NZD/USD Price Analysis: Approaches 0.6480 hurdle on overall positive China inflation report
|- NZD/USD prints four-day uptrend after China’s November month inflation data.
- Clear upside break of one-week-old descending trend line favor buyers.
- Convergence of 100-SMA, fortnight-old support line restricts bear’s entry.
NZD/USD takes the bids to refresh the daily high near 0.6410 during the four-day uptrend on early Friday. The Kiwi pair’s latest gains could be linked to China’s monthly inflation data, as well as the technical breakout.
That said, China’s headline Consumer Price Index (CPI) dropped to -0.2% MoM during November versus 0.1% expected and prior. However, the yearly figures came in firmer, to 1.6% versus 1.0% market forecast and 2.1% prior. On the same line was the Producer Price Index (PPI) which improved to -1.3% YoY during the stated month despite -1.5% forecasts and -1.3% previous readings.
It should be noted that the NZD/USD pair’s sustained break of a two-week-long descending trend line joins firmer RSI and bullish MACD signals to keep buyers directed towards the monthly high near 0.6480.
In a case where the NZD/USD bulls dominate past 0.6480, the 0.6500 round figure and June’s peak near 0.6575 could flash on their radars.
Alternatively, the resistance-turned-support line, around 0.6355 by the press time, precedes the 50-SMA level of 0.6330 to restrict the short-term NZD/USD downside.
However, a convergence of the 100-SMA and an upward-sloping trend line from November 21, near 0.6255, appears a tough nut to crack for the Kiwi pair bears and holds the key for their entry.
NZD/USD: Four-hour chart
Trend: Further upside expected
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