NZD/USD: Off one-week high amid mixed China PMIs, Trump-Biden blame game


  • NZD/USD steps back from the multi-day high of 0.6614.
  • China’s Caixin Manufacturing PMI eased 53.1 market consensus to 53.0, NBS Manufacturing PMI grew past-51.2 forecast during September.
  • Market sentiment dwindles as Asia-Pacific shares drop but the US futures gain while US presidential debate goes on.
  • Risk catalysts will be the key going forward, US GDP may also entertain pair traders.

NZD/USD eases from the intraday top of 0.6614, currently around 0.6607, after China’s Caixin Manufacturing PMI data release on early Wednesday. The kiwi pair earlier responded to the upbeat prints of official activity numbers from Beijing and the broad US dollar weakness due to the on-going US presidential debate.

China’s Caixin Manufacturing PMI slips below 53.1 forecast and previous reads to 53.0 during September.

Read: China’s Caixin Manufacturing PMI eases to 53.0 in September vs. 53.1 expected

Earlier during the day, China’s NBS Manufacturing PMI flashed upbeat prints for the current month’s activity data. The headline PMI grew past-51.2 expected and 51.0 prior to 51.5 whereas Non-Manufacturing PMI also offered a big beat to the forecasts of 52.1 and 55.2 previous readouts with 55.9 numbers for September.

What gains the market’s major attention is the exchange of words, mostly blames, by US President Donald Trump and his election rival Joe Biden. Having earlier hit each other on the coronavirus (COVID-19) issue, the presidential election candidates recently jumped on the economic issues like job creation.

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Although the increase in the odds favoring the Democratic leadership helps S&P 500 Futures to gain over 0.30% by the press time, stocks in Asia-Pacific downbeat as both the US candidates don’t like China much.

Looking forward, traders will keep eyes on debate updates and risk catalysts like the latest trade war between American and Europe. The World Trade Organization’s (WTO) authorization to slap the US with $40 billion of tariffs and China’s inability to perform on the phase one deal are the key challenges. Also, the COVID-19 resurgence and Brexit uncertainty may weigh on the risk-tone sentiment and help the US dollar to trim some of the latest losses. However, better than forecast -1.8% US GDP data becomes required for this.

Technical analysis

NZD/USD bulls recently cleared the 0.6600 key resistance comprising lows marked during late-August and September 09, which in turn favor the buyers to aim for a 50-day SMA level of 0.6637. However, a daily closing beneath the same might recall a 100-day SMA level of 0.6519.

Additional important levels

Overview
Today last price 0.6607
Today Daily Change 20 pips
Today Daily Change % 0.30%
Today daily open 0.6587
 
Trends
Daily SMA20 0.6664
Daily SMA50 0.6639
Daily SMA100 0.6514
Daily SMA200 0.6393
 
Levels
Previous Daily High 0.6603
Previous Daily Low 0.655
Previous Weekly High 0.6778
Previous Weekly Low 0.6511
Previous Monthly High 0.6764
Previous Monthly Low 0.6488
Daily Fibonacci 38.2% 0.6583
Daily Fibonacci 61.8% 0.657
Daily Pivot Point S1 0.6557
Daily Pivot Point S2 0.6527
Daily Pivot Point S3 0.6504
Daily Pivot Point R1 0.661
Daily Pivot Point R2 0.6633
Daily Pivot Point R3 0.6663

 

 

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