NZD/USD is bid despite drop in GDT price index, upbeat China services PMI helps

The NZD/USD is reporting gains despite a 5 percent drop in the GDP price index.
The positive divergence of the 4-hour RSI and upbeat China services PMI favors stronger corrective rally in NZD.

Omkar Godbole FXStreet Contributor

The NZD/USD pair is reporting gains in Asia even though the Global Dairy Trade (GDT) price index dropped 5 percent and could see a stronger corrective rally, courtesy of an upbeat China services PMI release.

Currently, the NZD/USD pair is trading at 0.6772, having clocked a session high and low of 0.6778 and 0.6744, respectively.

Global dairy prices fell at the biggest pace this year at a fortnightly auction held earlier today. The GDT price index fell 5 percent after slipping 1.2 percent at the previous sale.

However, the NZD remained bid and actually rose to a high of 0.6778 adding credence to the bullish divergence of the 4-hour relative strength index (RSI).

Further, a better-than-expected China Caixin services PMI released a few minutes ago, could add to the bullish tone around the NZD. The monthly gauge came in at 53.9, beating the estimated drop to 52.7 from 52.9 seen in May.

NZD/USD Technical Levels

Resistance: 0.6809 (10-day moving average), 0.6826 (June 21 low), 0.6851 (May 16 low).

Support: 0.6755 (5-day moving average), 0.6736 (June 29 low), 0.6688 (July 3 low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H		Overbought	Low
4H	Bullish	Neutral	High
1D	Bearish	Oversold	High
1W	Bearish	Oversold	Expanding
Updated Jul 4, 02:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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