- NZD/USD softens to around 0.5875 in Wednesday’s Asian session.
- China’s official PMI dropped to 49.0 in February, weaker than expected.
- Rising Middle East tensions continue to drag the Kiwi lower against the US Dollar.
The NZD/USD pair attracts some sellers to near 0.5875 during the Asian trading hours on Wednesday. The New Zealand Dollar (NZD) remains weak against the US Dollar (USD) after the mixed Chinese economic data. Traders will shift their attention to the US February ISM Services Purchasing Managers Index (PMI), which is due later on Wednesday.
China’s official Manufacturing PMI fell to 49.0 in February, compared to 49.3 in January. The reading came in below the market consensus of 49.1 in the reported month. Meanwhile, the NBS Non-Manufacturing PMI rose to 49.5 in February, compared to 49.4 in the previous reading, weaker than the 49.8 expected.
Additionally, China’s RatingDog Manufacturing PMI climbed to 62.1 in February from 50.3 in January. This figure came in better than the expectation of 50.1. The RatingDog Services PMI rose to 56.7 in February, better than the estimation and the previous reading of 52.3.
Escalating tensions in the Middle East have sparked significant risk aversion, which boosts safe-haven currencies such as the Greenback and creates a headwind for the pair. The United States (US) and Israel targeted Iran’s top-tier leadership and nuclear infrastructure over the weekend. US President Donald Trump said on Monday that combat operations will continue in Iran until America’s objectives are met.
