NZD/USD: 50-day SMA challenges buyers despite upbeat China Caixin data

China’s private manufacturing gauge crossed 50 level for the first time in four-months.
Developments surrounding the US-China trade deal and the US data will be in focus.

Anil Panchal FXStreet

NZD/USD is trading near 0.6830 during early Monday. The quote surged to the day’s high after China’s Caixin manufacturing PMI unexpectedly surged beyond 50.00 mark. Investors may now focus on the US data to forecast near-term trade direction.

The NZD/USD pair recently benefited from upbeat sentiment surrounding the US-China trade deal whereas strong manufacturing and non-manufacturing NBS PMI data from China added strength into the momentum.

Recently, China released March month figures of Caixin manufacturing purchasing managers’ index (PMI). The private manufacturing gauge unexpectedly rose to 50.8, the highest since August 2018, versus 49.8 market consensus and prior.

Up next in the investors’ radar will be developments surrounding the US-China trade talks as the US lawmakers will get a whole day to discuss what happened during their two-day Beijing visit. They may also signal expectations from Chinese delegation headed by Vice Premier Liu He that will reach the Washington DC during this week.

At the economic calendar, the US retail sales control group and ISM manufacturing PMI will be in limelight. The US retail sales group growth could weaken to 0.4% from 1.1% prior but likely increase in the USM manufacturing PMI to 54.5 from 54.2 could add strength in challenging the NZD/USD upside.

NZD/USD Technical Analysis

Unless providing a daily closing beyond 50-day simple moving average (SMA) figure of 0.6835, the NZD/USD pair can’t aim for 0.6870 and 0.6900 resistance levels.

Meanwhile, a daily closing under 100-day SMA level of 0.6810 may get a confirmation from further declines beneath 0.6800 round-figure to visit an ascending support-line stretched since January at 0.6760 now.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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