NZD/USD Price Analysis: Approaches 0.6480 hurdle on overall positive China inflation report


  • NZD/USD prints four-day uptrend after China’s November month inflation data.
  • Clear upside break of one-week-old descending trend line favor buyers.
  • Convergence of 100-SMA, fortnight-old support line restricts bear’s entry.

NZD/USD takes the bids to refresh the daily high near 0.6410 during the four-day uptrend on early Friday. The Kiwi pair’s latest gains could be linked to China’s monthly inflation data, as well as the technical breakout.

That said, China’s headline Consumer Price Index (CPI) dropped to -0.2% MoM during November versus 0.1% expected and prior. However, the yearly figures came in firmer, to 1.6% versus 1.0% market forecast and 2.1% prior. On the same line was the Producer Price Index (PPI) which improved to -1.3% YoY during the stated month despite -1.5% forecasts and -1.3% previous readings.

It should be noted that the NZD/USD pair’s sustained break of a two-week-long descending trend line joins firmer RSI and bullish MACD signals to keep buyers directed towards the monthly high near 0.6480.

In a case where the NZD/USD bulls dominate past 0.6480, the 0.6500 round figure and June’s peak near 0.6575 could flash on their radars.

Alternatively, the resistance-turned-support line, around 0.6355 by the press time, precedes the 50-SMA level of 0.6330 to restrict the short-term NZD/USD downside.

However, a convergence of the 100-SMA and an upward-sloping trend line from November 21, near 0.6255, appears a tough nut to crack for the Kiwi pair bears and holds the key for their entry.

NZD/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price 0.6406
Today Daily Change 0.0025
Today Daily Change % 0.39%
Today daily open 0.6381
 
Trends
Daily SMA20 0.6232
Daily SMA50 0.5937
Daily SMA100 0.6032
Daily SMA200 0.6282
 
Levels
Previous Daily High 0.6389
Previous Daily Low 0.6326
Previous Weekly High 0.6477
Previous Weekly Low 0.6155
Previous Monthly High 0.6314
Previous Monthly Low 0.5741
Daily Fibonacci 38.2% 0.6365
Daily Fibonacci 61.8% 0.635
Daily Pivot Point S1 0.6342
Daily Pivot Point S2 0.6303
Daily Pivot Point S3 0.6279
Daily Pivot Point R1 0.6404
Daily Pivot Point R2 0.6428
Daily Pivot Point R3 0.6467

 

 

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