NZD/USD Price Analysis: Retreats from monthly top towards 0.6200 on downbeat NZ PMI
- NZD/USD eases from three-week high to print the first daily loss, so far, in four days.
- Business NZ PMI marks activity contraction for the third consecutive month in June.
- 100-DMA, previous resistance line join bullish MACD signals to favor Kiwi buyers.
NZD/USD takes offers to refresh intraday low around 0.6230 amid the early hours of Friday’s Asian session. In doing so, the Kiwi pair takes a U-turn from the highest levels since May 24, marked the previous day, while also snapping a three-day uptrend, amid downbeat New Zealand (NZ) data.
NZ Business PMI for June came in at 48.9 versus 50.2 expected and 49.1 prior. With this, the Pacific nation’s activity gauge marked the third consecutive monthly contraction in business performance.
Not only the downbeat NZ data but the above 50.0 levels of the RSI (14) line also allowed the NZD/USD bulls to take a breather at the multi-day high.
However, the 100-DMA support of around 0.6220 joins the bullish MACD signals to put a floor under the NZD/USD price for intraday traders, a break of which can quickly drag the quote to the 38.2% Fibonacci retracement of October 2022 to February 2023 upside, near 0.6150.
Following that, the resistance-turned-support line stretched from early May, around 0.6120 at the latest, will be in the spotlight.
In a case where the NZD/USD drops below 0.6120 support, the odds of witnessing a south-run towards the previous monthly low of around 0.5985 can’t be ruled out.
Meanwhile, the NZD/USD buyers can aim for the 23.6% Fibonacci retracement level of around 0.6300 on crossing the latest peak of 0.6250.
Though, a 4.5-month-old resistance line and a horizontal area comprising multiple levels marked since early February, respectively near 0.6330 and 0.6385-90, appear tough nuts to crack for the Kiwi pair buyers to keep the reins afterward.
NZD/USD: Daily chart
Trend: Limited 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.
