- USD selling extends into 2018.
- Benefits from higher oil prices, Chinese PMI.
- US PMI, NZ GDT price index in focus.
The NZD/USD pair resumed its recent upbeat momentum and reached fresh more-than two-month tops above 0.71 handle this Tuesday, having reversed a temporary drop witnessed on Friday.
NZD/USD: 200-DMA at 0.7136 – a whisker away
The sentiment around the Kiwi remains lifted on the back of ongoing weakness seen in the US dollar, with the DXY now flirting with three-month troughs of 91.80. Markets remain wary over the Fed rate hike outlook under Powell’s President and hence, continue to sell-off the buck in tandem with Treasury yields.
Additionally, an unexpected rise booked in the Chinese Caixin manufacturing PMI data for December also collaborated to the renewed uptick seen in NZD/USD. Meanwhile, the rally in oil prices also cannot be ruled out as one of the key factors behind the bullish momentum.
The pair now looks forward to the NZ GDT price index data and US final manufacturing PMI report for fresh trading impetus.
The pair finds next resistances at 0.7136 (200-DMA), 0.7150 (psychological levels), 0.7172 (Oct 19 high). Meanwhile, the supports are located at 0.7089/84 (5-DMA, daily pivot), 0.7056 (10-DMA) and 0.7028 (100-DMA).
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