NZD/USD Price Analysis: Focus remains on 0.6800-6790 key support following China PMI
|- NZD/USD struggles to defend Monday’s bounce off crucial support zone.
- China’s NBS Manufacturing PMI jumps back into expansion territory but Non-Manufacturing PMI eases in November.
- Sustained trading below 17-month-old trend line, bearish MACD signals favor sellers.
- Bulls need validation from 50% Fibonacci retracement, March’s low.
NZD/USD prints mild gains around 0.6820 amid early Tuesday, following the rebound from important support the previous day.
Pair’s recent gains could be linked to cautious optimism in the market and mixed data from the largest customer China. That said, the headline NBS Manufacturing PMI jumped back to expansion territory with above 50.0 numbers for the first time in three months but Non-Manufacturing PMI eased below market consensus and prior readouts during November. Following the data release, China says, “Economic mood is improving as 3 PMIs show expansion.”
Read: China's November official Manufacturing PMI back in expansion
Technically, bears cheer a sustained trading below the 17-month-old support line, now resistance around 0.6900. However, the 61.8% Fibonacci retracement (Fibo.) level of June 2020 to February 2021 upside and multiple levels marked during September and November 2020 provide a tough nut to crack for the bears around 0.6800-6790 area.
Should the kiwi sellers successfully conquer 0.6790 support, October 2020 peak surrounding 0.6725 should return to the charts.
Alternatively, September 2021 bottom close to 0.6860 may initially probe the pair’s corrective pullback before the aforementioned support-turned-resistance line around 0.6900.
Adding to the upside filters is the 50% Fibo. and March’s low, respectively near 0.6925 and 0.6945.
NZD/USD: Daily chart
Trend: Further weakness expected
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