- Dismal China import and export growth numbers released earlier today reinforced doubts about global growth.
- The NZD/USD has dropped to its 50-hour MA and could slide even further as worries about cooling global economy are likely to reverberate through the global financial markets.
The NZD is being offered in response to the below-forecast China import and export growth figures.
The Kiwi dollar is currently trading at the 50-hour moving average (MA) support of 0.6805, having found offers near 0.6802 an hour ago.
Chinese imports dropped 3.1 percent year-on-year in CNY terms in December, following a 7.8 percent rise in November. Notably, markets were expecting an import growth of 12 percent. Further, exports rose just 0.2 percent in annualized terms, missing the forecast of 6.6 percent growth by a big margin.
The drop in imports indicates a slowing domestic demand. So, it seems safe to say that consumption is unlikely to compensate for the decline in international trade due to the ongoing trade war with the US. Put simply, the world's second-largest economy could be in for a deeper economic slowdown in the near future.
Also, the slowdown in exports indicates anemic global demand. No wonder, the commodity dollars like the NZD and AUD are feeling the pull of gravity.
Looking forward, the path of least resistance is to the downside, as the fears of global growth slowdown are likely to reverberate through the European and the North American FX desks.
NZD/USD Technical Levels
Today Last Price: 0.6807
Today Daily change: -23 pips
Today Daily change %: -0.337%
Today Daily Open: 0.683
Previous Daily SMA20: 0.6747
Previous Daily SMA50: 0.679
Previous Daily SMA100: 0.6683
Previous Daily SMA200: 0.6796
Previous Daily High: 0.6845
Previous Daily Low: 0.6777
Previous Weekly High: 0.6845
Previous Weekly Low: 0.6707
Previous Monthly High: 0.697
Previous Monthly Low: 0.6686
Previous Daily Fibonacci 38.2%: 0.6819
Previous Daily Fibonacci 61.8%: 0.6803
Previous Daily Pivot Point S1: 0.679
Previous Daily Pivot Point S2: 0.6749
Previous Daily Pivot Point S3: 0.6722
Previous Daily Pivot Point R1: 0.6858
Previous Daily Pivot Point R2: 0.6885
Previous Daily Pivot Point R3: 0.6926
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