NZD/USD Price Analysis: Pokes 0.6420 support as downbeat China statistics battle firmer NZ GDP
- NZD/USD remains pressured around 1.5-month-old ascending support line.
- Repeated failures to cross four-month-old horizontal resistance area, overbought RSI conditions tease sellers.
- Tops marked in May and June add to the upside filters.
NZD/USD sellers attack an upward-sloping trend line from early November, near 0.6420, after China’s headline data disappointed during early Thursday. Even so, firmer prints of New Zealand’s (NZ) third quarter (Q3) Gross Domestic Product (GDP) defend the Kiwi pair buyers.
That said, China’s Retail Sales slumped to -5.9% in November versus -3.6% expected and -0.5% prior while the Industrial Production came in at 2.2% compared to 3.3% market forecasts and 5.0% previous readings.
At home, NZ Q3 GDP improved to 2.0% QoQ and 6.4% YoY versus 0.9% expected and 5.5% market forecasts in that order. It should be noted that New Zealand's economic growth came in as 1.7% and 0.4% respectively during the second quarter (Q2).
Technically, the nearly overbought conditions of the RSI (14) join the impending bear cross on the MACD to tease sellers. On the same line is the repeated failure of the Kiwi pair to cross a four-month-old horizontal resistance area surrounding 0.6470-80.
Even if the quote rises past 0.6480, the 0.6500 round figure and tops marked during May and June of 2022, close to 0.6570-75, will be an important hurdle for the NZD/USD bulls to cross to keep the reins.
Alternatively, a daily closing below the ascending support line from early November, around 0.6420, becomes necessary for the NZD/USD bears to take control.
Following that, the mid-June swing high near 0.6395 and November’s peak of 0.6290 could lure the sellers.
NZD/USD: Daily 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.
