NZD/USD drops to near 0.6300 as US Dollar attempts recovery, China’s official PMI in focus


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  • NZD/USD has slipped sharply below 0.6320 as the US Dollar Index has shown a recovery move.
  • Market mood is turning cautious as the Covid-19 situation in China is getting vulnerable.
  • Going forward, investors will keep an eye on China’s official PMI data.

The NZD/USD pair has dropped to near intraday low at 0.6316 in the Asian session as the US Dollar Index (DXY) has attempted a recovery after dropping to near 103.50. The New Zealand Dollar has witnessed selling pressure as COVID-19 situation in China is getting more vulnerable.

The headline of rising deaths from Covid-19 in China has spooked the market mood again. According to UK-based health data firm Airfinity “Around 9,000 people in China are probably dying each day from COVID-19. Also, cumulative deaths in China since Dec. 1 likely reached 100,000 with infections totaling 18.6 million.

S&P500 futures are holding the majority of their gains recorded on Thursday, portraying cautious optimism in the global market. At the press time, the USD Index is attempting to extend its rebound move above the crucial hurdle of 103.70. Meanwhile, the 10-year US Treasury yields have recovered their entire morning losses and have scrolled above 3.83%.

It seems that investors are shrugging off the release of an increment in initial jobless claims data and are supporting the USD index again. On Thursday, the United States Labor Statistics department reported an increase in jobless claims to 225K led by a pause in the recruitment process by various firms due to a bleak economic outlook.

This week, investors will keep an eye on China’s official PMI data, which will release this weekend. As per the projections, the National Bureau of Statistics (NBS) Manufacturing PMI is seen higher at 49.2 vs. the former release of 48.0. A sheer outperformance is expected from the Non-Manufacturing PMI catalyst as the economic data is seen at 51.4 vs. the prior release of 46.7. It is worth noting that New Zealand is one of the leading trading partners of China and the PMI status of the Chinese economy will have a significant impact on the New Zealand Dollar.

NZD/USD

Overview
Today last price 0.6321
Today Daily Change -0.0027
Today Daily Change % -0.43
Today daily open 0.6348
 
Trends
Daily SMA20 0.6349
Daily SMA50 0.6148
Daily SMA100 0.6041
Daily SMA200 0.6244
 
Levels
Previous Daily High 0.6359
Previous Daily Low 0.6263
Previous Weekly High 0.641
Previous Weekly Low 0.623
Previous Monthly High 0.6314
Previous Monthly Low 0.5741
Daily Fibonacci 38.2% 0.6322
Daily Fibonacci 61.8% 0.63
Daily Pivot Point S1 0.6288
Daily Pivot Point S2 0.6227
Daily Pivot Point S3 0.6192
Daily Pivot Point R1 0.6384
Daily Pivot Point R2 0.642
Daily Pivot Point R3 0.648

 

 

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