Ella 
In the Asian market on Friday, NZD/USD extended losses for the second consecutive day, falling to around 0.5960. The New Zealand dollar faces challenges as market concerns about China’s real estate sector overshadow the positive impact of retail sales and industrial production data released on Wednesday. New Zealand is a major exporter of Chinese dairy products and is very sensitive to China’s economic situation.
China’s October fixed asset investment (year-to-date) increased by 2.9%, lower than expected and unchanged from the previous value of 3.1%. However, the Chinese government’s injection of 1 trillion yuan of low-cost financing into the real estate sector is seen as a strategic move to address concerns about the credit crunch. This move is likely to have a ripple effect in the global economy, including New Zealand, and have an impact on NZD/USD volatility.
NZD/USD appears to lack support despite a sharp rise in New Zealand’s PPI output in the third quarter, rising to 0.8% from 0.2% previously.
On the other hand, the U.S. dollar appears to be consolidating as U.S. initial jobless claims improved last week. Challenging labor market conditions, with continuing U.S. jobless claims reaching their highest level since 2022 and initial U.S. jobless claims also rising to their highest level in nearly three months, do not appear to have affected the dollar’s resilience.
The number of people filing for unemployment benefits in the United States rose to 1.865 million in the week ended November 3, compared with the previous figure of 1.833 million. The number of people filing for unemployment benefits in the week ended November 10 increased to 231,000, exceeding expectations of 220,000.
U.S. housing data due to be released on Friday is expected to provide new signals for the housing sector, which may affect trading decisions in currency pairs such as NZD/USD.
