- NZD/USD pays a little heed to China’s private activity data but keeps early-Asian gains.
- China’s Caixin Manufacturing PMI follows the footsteps of official activity numbers.
- Risks regain strength on US stimulus hopes, virus/vaccine news.
- RBA, Powell’s testimony and US PMI to offer extra direction.
NZD/USD wavers around 0.7120 even as China’s November month Caixin Manufacturing PMI flashed upbeat results during early Tuesday. However, the kiwi pair cheers the US dollar weakness, as well as risk-on mood, while keeping the upside momentum intact beyond the 0.7000 round-figure.
While the US dollar’s bounce off a fresh low since April 2018 dragged NZD/USD back from a nearly 2.5-year high on Monday, the greenback sellers returned amid hopes of further stimulus from the US. In their prepared remarks for today’s testimonies, Fed Chair Jerome Powell and Treasury Secretary Steve Mnuchin pitched moderating economic recovery while pushing for the much-awaited aid package.
Other than the stimulus hopes, news that Moderna is ready to file for the emergency use of its covid vaccine to the US Food and Drug Administration (FDA) also favor the risks.
Moving on, the kiwi traders may keep their eyes on the risk catalysts and await monetary policy results from the RBA for immediate direction. However, major attention will be given to the Fed Chair Powell’s testimony and the early-month PMI data from the US, to be published during the later Tuesday.
NZD/USD sellers are less likely to enter above the 0.7000 threshold, not to for about the December 2018 top near 0.6970. As a result, bulls can keep attacking the mid-2018 peak surrounding 0.7050 while eyeing March 2018 low near 0.7150.
Additional important levels
|Today last price||0.7022|
|Today Daily Change||10 pips|
|Today Daily Change %||0.14%|
|Today daily open||0.7012|
|Previous Daily High||0.7052|
|Previous Daily Low||0.7011|
|Previous Weekly High||0.704|
|Previous Weekly Low||0.6897|
|Previous Monthly High||0.7052|
|Previous Monthly Low||0.6589|
|Daily Fibonacci 38.2%||0.7027|
|Daily Fibonacci 61.8%||0.7036|
|Daily Pivot Point S1||0.6998|
|Daily Pivot Point S2||0.6984|
|Daily Pivot Point S3||0.6957|
|Daily Pivot Point R1||0.7039|
|Daily Pivot Point R2||0.7066|
|Daily Pivot Point R3||0.708|
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