The New Zealand dollar may decline if key Chinese data releases today stoke concerns about slowing growth in Asia's largest economy.
The kiwi was little changed at 65.32 US cents at 8am in Wellington, from 65.31 cents at 5pm yesterday ahead of the US Veterans Day public holiday today. The trade-weighted index advanced to 71.46 from 71.35 yesterday.
The key focus for currency traders today will be a slew of data releases from China amid concern about the impact of slowing growth in Asia's powerhouse. Chinese data published yesterday showed inflation cooled more than expected in October, advancing 1.3 percent from a year earlier, lower than the 1.6 percent pace in September and the 1.5 percent forecast in a Reuters poll. Traders will be looking to see if that trend is also evident in Chinese data due out today on October retail sales, industrial production and fixed asset investment.
"Asian equities closed mostly in the red yesterday, influenced by soft Chinese inflation data. The October CPI print undershot expectations, albeit mostly driven by the volatile food component," Bank of New Zealand currency strategist Raiko Shareef said in a note. "Investors will be closely watching today's retail sales, industrial production, and fixed asset investment data out of China. These will likely be the major cue for risk assets in Asia, and heading into the European session.
"A very soft reading could well see NZD break below 0.65."
