NZD/USD hovers around 0.5820 after subdued Kiwi, Chinese data


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  • NZD/USD extends losses on weaker Kiwi and Chinese economic data.
  • Kiwi Employment Change declined by 0.2% in the third quarter.
  • China's Manufacturing PMI dropped to 49.5 in October.
  • Traders seek Fed's remarks on interest rates trajectory.

NZD/USD trims most of its intraday losses but still trades in the negative trajectory, bidding around 0.5820 during the early European session. The pair faces losses in the second consecutive session as market sentiment leans toward the US Dollar (USD) ahead of monetary policy decision by the US Federal Reserve (Fed) on Wednesday.

Additionally, the moderate employment data from New Zealand undermines the Kiwi pair. Employment Change declined by 0.2% in the third quarter against the expected 0.4% readings. Unemployment Rate increased, as expected, to 3.9% from 3.6% prior. This indicates that the Reserve Bank of New Zealand (RBNZ) will likely maintain its policy rate in November, putting downward pressure on the NZD/USD pair.

Moreover, as revealed in the latest Wednesday data, the unanticipated drop in China's Caixin Manufacturing Purchasing Managers' Index (PMI) sparks worries about deteriorating conditions in the world's second-largest economy, which adds pressure on the Kiwi Dollar (NZD). The index showed a print of 49.5 in October compared to the 50.8 expected, lower than September's expansion at 50.6.

On Tuesday, the US Dollar Index (DXY) got a lift from higher US Treasury yields, holding steady around 106.70 as the 10-year US bond yield stood at 4.90% by the press time. The prevailing market sentiment suggests an anticipation that the US Federal Reserve will keep the current interest rate at 5.5% in the Wednesday meeting.

Investors will closely observe the Fed's remarks on the future path of interest rates, and any hint of a hawkish stance could potentially bolster the US Dollar (USD).

NZD/USD

Overview
Today last price 0.582
Today Daily Change -0.0005
Today Daily Change % -0.09
Today daily open 0.5825
 
Trends
Daily SMA20 0.5896
Daily SMA50 0.5916
Daily SMA100 0.6029
Daily SMA200 0.6128
 
Levels
Previous Daily High 0.5858
Previous Daily Low 0.5803
Previous Weekly High 0.5874
Previous Weekly Low 0.5772
Previous Monthly High 0.6056
Previous Monthly Low 0.5772
Daily Fibonacci 38.2% 0.5824
Daily Fibonacci 61.8% 0.5837
Daily Pivot Point S1 0.5799
Daily Pivot Point S2 0.5774
Daily Pivot Point S3 0.5744
Daily Pivot Point R1 0.5854
Daily Pivot Point R2 0.5884
Daily Pivot Point R3 0.5909

 

 

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