Ella 
In early Asian trading on Tuesday, NZD/USD fell from a one-week high of 0.5935 to 0.5910.
The latest data released by Statistics New Zealand on Tuesday showed that New Zealand’s electronic card retail sales increased at an annual rate of 3.7% in August, compared with the previous value of 2.2%; and at a monthly rate of 0.7%, compared with the previous value of 0%. Finally, the annual rate of tourist arrivals in July was 59.3%, compared with the previous figure of 88.5%.
In addition to this, news on China’s economic development may benefit NZD/USD, the proxy currency for the Chinese economy, and limit the downside for NZD/USD. Still, deflationary pressures in China eased as consumer prices rose from negative territory in August. Data released last Saturday showed that China’s consumer price index (CPI) rose at an annual rate of 0.1% in August, compared with -0.3% last month, and was expected to rise by 0.2%. China’s monthly inflation rate was 0.3%, in line with expectations.
In terms of the U.S. dollar, recent data show that the U.S. manufacturing industry is performing weaker than the service industry. Investors believe the Fed will remain on hold at its September meeting. However, the U.S. Consumer Price Index (CPI) released on Wednesday may provide a signal for the Federal Reserve to further raise interest rates in the second half of this year. Investors expect headline U.S. inflation to rise 0.5% annually as gasoline prices rebound. While core inflation remained steady at 0.2%.
U.S. Treasury Secretary Janet Yellen said over the weekend that she was more optimistic that the United States could control inflation without affecting the job market. Yellen also said on Sunday that all indicators of inflation were declining and there was no massive wave of layoffs.
Market participants will be keeping a close eye on Wednesday’s U.S. Consumer Price Index (CPI). U.S. retail sales and industrial production will be released on Thursday. Market focus will turn to China’s July retail sales and industrial production data, which could have an impact on NZD/USD. Traders will look to this data for NZD/USD trading opportunities.
