NZD/USD Price Analysis: Stays on the way to 0.6800 on upbeat China PMI
- NZD/USD seesaws above previously important resistance, recently off intraday low.
- Bullish MACD, daily closing beyond 15-week-old trend line hurdle favor buyers to aim for 100-day EMA.
- China’s NBS Manufacturing and Non-Manufacturing PMIs joined Caixin Manufacturing PMI to portray February’s recovery in key activities.
NZD/USD pares intraday losses a three-day top near 0.6780 during Tuesday’s Asian session.
The kiwi pair offered the first daily closing beyond a downward sloping trend line from mid-November the previous day. The resistance breakout gained support from China’s February PMIs to keep buyers hopeful. However, risk catalysts and the USD rebound seem to test the bulls.
That said, China’s headline NBS Manufacturing PMI for February rose to 50.2 versus 49.9 expected and 50.1 prior. Further, the Non-Manufacturing PMI crossed 51.1 previous readouts with 51.6 figures for the stated month. Additionally, China’s Caixin Manufacturing PMI also rallied to 50.4 compared to 49.3 expected and 49.1 prior.
Given the trend line breakout and firmer data from the key customer NZD/USD prices are likely to stay directed towards the 100-day EMA level of 0.6808.
However, a clear upside break of the stated EMA will enable the bulls to challenge January’s peak of 0.6891.
Alternatively, a daily closing below the stated resistance-turned-support line, near 0.6750 by the press time, could drag the quote toward the 23.6% Fibonacci retracement of October-January downside, near 0.6690.
It should be noted, however, that an upward sloping support line from January 28, close to 0.6670 at the latest, will challenge NZD/USD bears afterward.
NZD/USD: Daily chart
Trend: Further upside 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.
