NZD/USD Price Analysis: Fades bounce off 200-HMA despite upbeat China trade data
- NZD/USD takes offers to pare weekly gains strong China trade figures.
- China Customs fail to cheer the strong trade volume in 2022 as figures jumped 40 trillion Yuan.
- Weekly resistance line guards immediate upside, 100-HMA probes bears.
- MACD, RSI also favor the pullback moves despite firmer China trade numbers for 2022.
NZD/USD slides towards the intraday low of 0.6369 as it takes offers to 0.6372 despite firmer China trade numbers for December, published early Friday.
That said, China’s Trade Balance figures jumped to a record high in Yuan terms for 2022. However, China Customs Spokesperson Lyu Daliang mentioned that China's foreign trade will continue to face a number of challenges and difficulties in 2023, per Reuters.
It should be noted that China's Trade Balance grew 7.7% in 2022. “China's total goods imports and exports hit a record high again in 2022, expanding 7.7% year on year to 42.07 trillion yuan (about 6.25 trillion U.S. dollars), official data showed Friday,” per Xinhua.
Technically, NZD/USD extends the early-day pullback from the weekly resistance line, around 0.6420 at the latest to poke 100-HMA support of 0.6370.
In doing so, the Kiwi pair fades the previous day’s bounce off the 200-HMA, at 0.6325 by the press time.
Given the looming bear cross on the MACD and RSI (14) retreat, as well as the China Customs’ pessimism surrounding trade conditions in 2023, the NZD/USD pair is likely to witness further downside. Though, the sellers might have a tough time in breaking the 200-HMA support.
NZD/USD: Hourly chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
