NZD/USD edged higher to around 0.6025 during early Asian trading on Monday. China’s RatingDog Manufacturing PMI increased to 50.3 in January 2026, in line with expectations. Meanwhile, US producer prices rose strongly in December, with PPI climbing 0.5% month over month.
The NZD/USD pair is trading on a positive note around 0.6025 during early Asian hours on Monday. The New Zealand Dollar remains supported against the US Dollar following the release of China’s Manufacturing PMI data, while traders await further direction from the US ISM Manufacturing PMI report due later in the day.
Data published by RatingDog showed that China’s Manufacturing Purchasing Managers’ Index rose to 50.3 in January from 50.1 in December, marking the highest reading since October 2025 and coming in line with market expectations. The data may offer modest support to the China-sensitive Kiwi, given China’s status as New Zealand’s largest trading partner.
US President Donald Trump’s selection of Kevin Warsh as the next Federal Reserve (Fed) Chair could boost the US dollar. Markets expect Warsh may lean toward a smaller Fed balance sheet and likely favor lower interest rates but would stop well short of the more aggressive easing associated with some of the other potential candidates.
Additionally, hotter-than-expected US producer price inflation could lift the Greenback and create a headwind for the pair. The Bureau of Labor Statistics revealed on Friday that US Producer Price Index (PPI) rose to 3.0% year-over-year (YoY) in December, beating estimates of 2.7%. Meanwhile, the PPI rose to 0.5% month-over-month (MoM) in December, above the market consensus and the previous reading of 0.2%. This report could further strengthen the case for the Fed to hold rates steady while policymakers monitor how inflation trends.
Sources: Fxstreet
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