NZD Exchange Rate - The NZD/USD currency pair attracted some buyers during the Asian session on Thursday and currently appears to have halted the decline from the 0.6175 level, which was a two-week high. The spot price is now in the 0.6130-0.6135 range, though a lack of follow-through buying calls for caution before preparing for further appreciation.

A private sector survey released today showed that China's factory activity grew steadily for the third consecutive month in January. The Caixin China Manufacturing PMI remained at 50.8 in January, the same as the previous month's figure, and exceeded market expectations of a decline to 50.6. This gave a slight boost to antipodean currencies, including the Kiwi, which along with the weakening U.S. Dollar, became a driving factor for the NZD/USD pair.

However, the optimism is likely to be limited due to China's weak economic recovery. Additionally, the less dovish stance from the Federal Reserve (Fed) on Wednesday, contrary to market expectations of a rate cut in March, helped the U.S. Dollar stay near its highest level since December 13. Geopolitical risks also favor the U.S. Dollar as a safe haven, which could further limit NZD/USD gains.

Traders now await U.S. economic data, including the release of Weekly Initial Jobless Claims and the ISM Manufacturing PMI. Along with general risk sentiment, these could influence the U.S. Dollar's price dynamics and provide momentum to the NZD/USD pair. Nevertheless, the main focus remains on the highly anticipated U.S. monthly employment report, known as Nonfarm Payrolls (NFP), which will be released on Friday.

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Disclaimer!

The analysis "NZD Strengthens After Positive PMI Data from China" is based on fundamental and technical views from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Be sure to conduct independent research on other forex information before using it as a reference for your trades.

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