NZD/USD looks to extend 6-day winning run despite China's inflation struggles


  • NZD/USD stays mildly bid even as China data shows persistent factory deflation. 
  • China's economic rebound may not be as strong as expected, the weak PPI suggests
  • Coronavirus vaccine hopes bode well for risk assets, including the NZD.

NZD/USD trades well above 0.68 at press time and looks to extend its six-day winning run despite the dismal China inflation. 

The Producer Price Inflation or factory-gate prices fell by 2.1% year-on-year in October versus an expected drop of 2%, while the Consumer Price Index declined by 0.3% month-no-month, missing the expectation for a 0.2% rise and bringing the annualized growth to 0.5% from September's 0.8%. 

The persistent factory deflation highlights a weakness in industrial demand and suggests that China's economic recovery may not be as strong as previously anticipated. The data is bearish for commodity dollars like the NZD. So far, however, the Kiwi bears have remained on the sidelines, allowing the pair to keep marginal gains above 0.6820. 

The NZD's resilience could be associated with New Zealand's relative success in stamping out coronavirus and the pro-risk environment in the financial markets. The US drug giant Pfizer announced positive results of its coronavirus vaccine on Monday, triggering a rally in the US stocks and a sharp sell-off in gold, a haven asset. 

The NZD/USD pair rose over 0.73% on Monday to register its sixth straight day of gains. 

Technical levels

NZD/USD

Overview
Today last price 0.6823
Today Daily Change -0.0002
Today Daily Change % -0.03
Today daily open 0.6825
 
Trends
Daily SMA20 0.6668
Daily SMA50 0.6659
Daily SMA100 0.6618
Daily SMA200 0.6398
 
Levels
Previous Daily High 0.6856
Previous Daily Low 0.6783
Previous Weekly High 0.6803
Previous Weekly Low 0.6589
Previous Monthly High 0.6726
Previous Monthly Low 0.6546
Daily Fibonacci 38.2% 0.6828
Daily Fibonacci 61.8% 0.6811
Daily Pivot Point S1 0.6786
Daily Pivot Point S2 0.6748
Daily Pivot Point S3 0.6714
Daily Pivot Point R1 0.6859
Daily Pivot Point R2 0.6894
Daily Pivot Point R3 0.6932

 

 

 

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