The EUR/NZD currency pair held in proximity to a 2-week high of 1.9935 on Monday, as the Euro received a boost from hawkish comments by European Central Bank officials.
Over the weekend, ECB Governing Council member Yannis Stournaras said that a modest increase in interest rates could restrain inflation without harming the broader economy.
And, last Friday, Governing Council member Boris Vujcic noted that any decision on a possible rate hike in June would depend on forthcoming data.
Meanwhile, the New Zealand Dollar has faced renewed selling interest after weaker-than-expected Chinese macroeconomic data.
Figures released by the National Bureau of Statistics on Monday showed that China’s retail sales had risen 0.2% year-on-year in April, down from 1.7% in March and below market expectations of 2% growth.
Industrial production also lost momentum, rising 4.1% year-on-year in April compared with 5.7% previously, and falling short of the 5.9% consensus.
Due to New Zealand’s close economic ties with China, the weaker Chinese data is exerting downward pressure on the New Zealand Dollar, often viewed as a proxy for Chinese growth prospects.
The EUR/NZD currency pair was last down 0.26% on the day to trade at 1.9857.
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