NZD/USD erases Wednesday's gains, trades below 0.6550

NZD/USD is staying under bearish pressure following Wednesday's climb.
Upbeat GDP data from China failed to provide a boost to NZD.
US Dollar Index is staging a recovery ahead of key data.

Eren Sengezer FXStreet

The NZD/USD pair gained around 30 pips on Wednesday but struggled to preserve its bullish momentum on Thursday. As of writing, the pair was down 0.45% on the day at 0.6540.

Eyes on US data

Earlier in the day, the data from China showed that Industrial Production expanded by 4.8% on a yearly basis in June and the Gross Domestic Product expanded by 11.5% on a quarterly basis in the second quarter. However, annual Retail Sales in China contracted by 1.8% in June and didn't allow the China-proxy NZD to gather strength against its rivals.

Meanwhile, the souring market sentiment put additional weight on the risk-sensitive kiwi's shoulders and caused the bearish pressure to remain intact.

In the second half of the day, the weekly Initial Jobless Claims and Retail Sales data will be featured in the US economic docket. Ahead of these data, the US Dollar Index (DXY) is up 0.2% on the day at 96.23 and the S&P 500 futures are losing 0.65% on the day. If risk-aversion continues to dominate the financial markets in the second half of the day, the DXY could push higher and drag the pair toward 0.6500.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.654
Today Daily Change	-0.0032
Today Daily Change %	-0.49
Today daily open	0.6572

Trends
Daily SMA20	0.6496
Daily SMA50	0.635
Daily SMA100	0.6195
Daily SMA200	0.634

Levels
Previous Daily High	0.6585
Previous Daily Low	0.653
Previous Weekly High	0.6601
Previous Weekly Low	0.6519
Previous Monthly High	0.6585
Previous Monthly Low	0.6186
Daily Fibonacci 38.2%	0.6564
Daily Fibonacci 61.8%	0.6551
Daily Pivot Point S1	0.654
Daily Pivot Point S2	0.6507
Daily Pivot Point S3	0.6485
Daily Pivot Point R1	0.6595
Daily Pivot Point R2	0.6617
Daily Pivot Point R3	0.665

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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