NZD/USD hits one-month highs, eyes China data


  • NZD/USD is currently better bid at one-month highs. 
  • The pair's daily chart is reporting a bullish reversal pattern. 
  • China's data is likely to show the GDP growth slowed to 6.1% in the third quarter. 

NZD/USD has hit a one-month high and may extend gains if China's gross domestic product (GDP) for the third quarter, scheduled at 02:00 GMT, betters estimates.

At press time, the currency pair is trading at 0.6369, the highest level since Sept. 16,  having picked up a bid at 0.6343 in the early Asian trading hours. Also, the spot is trading above the 200-day moving average for the first time since July 30.

Bullish reversal

The pair rallied by 0.88% on Thursday - the biggest single-day gain since June 3 – validating the seller exhaustion signaled by consecutive Doji candles created on Tuesday and Wednesday. Put simply, Thursday's rise confirmed a bullish Doji reversal and opened the doors for a convincing break above 0.64.

Therefore, the rise to one-month highs seen at press time is not surprising and further upside could be seen if China's data assuage fears of a deeper slowdown in the world's second-largest economy.

Focus on China data

The data due at 02:00 GMT is expected to show the gross domestic product (GDP) grew by 6.1% in the July-September quarter from a year earlier, the slowest pace since the first quarter of 1992, the earliest quarterly data on record. The economy had grown by 6.2% in the second quarter.

Meanwhile, the Industrial Production is forecasted to rise 5% year-on-year in September, having risen by 4.4% in the preceding month. September Retail Sales growth is expected to print at 7.8% year-on-year, following a 7.5% reading in August. 

An above-forecast data will likely bolster the bullish setup in the NZD/USD pair. A weak data could yield a pullback in NZD/USD, although the bullish Doji reversal will remain valid as long as the pair is holding above Wednesday's low of 0.6241.

Technical levels

NZD/USD

Overview
Today last price 0.6369
Today Daily Change 0.0022
Today Daily Change % 0.35
Today daily open 0.6347
 
Trends
Daily SMA20 0.6295
Daily SMA50 0.6349
Daily SMA100 0.6487
Daily SMA200 0.6615
 
Levels
Previous Daily High 0.6356
Previous Daily Low 0.628
Previous Weekly High 0.6355
Previous Weekly Low 0.6276
Previous Monthly High 0.6452
Previous Monthly Low 0.6249
Daily Fibonacci 38.2% 0.6327
Daily Fibonacci 61.8% 0.6309
Daily Pivot Point S1 0.6299
Daily Pivot Point S2 0.6252
Daily Pivot Point S3 0.6223
Daily Pivot Point R1 0.6375
Daily Pivot Point R2 0.6404
Daily Pivot Point R3 0.6451

 

 

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