NZD/USD remains steady after Chinese GDP report

New Zealand dollar traded steadily against its US rival on Friday, following the release of mixed economic data out of China.

NZD/USD rose to a session high at 0.8487 at 6:25 GMT, after which consolidation followed at 0.8478, dipping 0.09% for the day. Support was likely to be found at October 15th low, 0.8358, while resistance was to be encountered at October 17th high, 0.8525.

The kiwi gained ground against the greenback on Thursday, after Federal Reserve Bank of Chicago President Charles Evans, a voting member of the Federal Open Market Committee this year, said that the central bank should put off scaling back of monetary stimulus, because of disruptions in economic data caused by the partial US government shutdown that ended just yesterday.

Additionally, earlier on Friday, the National Bureau of Statistics of China reported that nation’s annual Gross Domestic Product rose 7.8% in the third quarter, marking the largest rate of growth this year, and also came in consonance with expectations, following the 7.5% increase in Q2. According to data, the indicator, gauging nation’s overall economic activity, was poised to reach and even exceed Chinese government’s growth objective of 7.5% during the whole year. However, other reports, released by non-governmental institutions in the country, suggested that economy might decelerate its rate of growth.

Chinese industrial production increased 10.2% in September, after the 10.4% advance in August, while experts’ projections were slightly exceeded, as they pointed a 10.1% increase.

Also, China’s retail sales rose 13.3% in the month of September, after a 13.4% gain during the preceding month. Preliminary estimates showed that sales will increase 13.5% in September. All these data points are of some importance for the kiwi dollar, as China is New Zealand’s second largest export market.

In New Zealand, according to a survey on business confidence by the National Australia Bank (NAB), released on Thursday, the corresponding index increased to a reading of 122.3 in October from 118.8 in September.

Meanwhile, in the United States, yesterday a weekly report said that the number of people who filed for unemployment assistance in the country decreased by 15 000 to 358 000 during the week ending on October 12th 2013, as the result was still influenced by delayed processing of data in California. Experts had anticipated that the number of claims will decrease to 335 000 from the revised down 373 000 claims in the preceding week.

Elsewhere, the kiwi was steady against the Australian dollar, as AUD/NZD cross was gaining 0.05% on a daily basis to trade at 1.1366 at 8:40 GMT.