NZD/USD recedes from monthly top below 0.6600 after China inflation data


Share:
  • NZD/USD extends pullback from June month high of 0.6585.
  • China’s CPI grew more than 2.5% to 2.7% but PPI dropped below -3.2% to -3.7% on YOY.
  • Australian states keep battling to tame the virus spread, US figures cross 3.0 million.
  • New Zealand’s ANZ data have been upbeat off-late but failed to ignore the risk reset.

NZD/USD drops to 0.6565, down 0.20% on a day, amid the Asian session on Thursday. The pair’s latest weakness could be traced from its failures to cross June month’s top as well as mixed inflation numbers from China. In doing so, the kiwi pair ignores upbeat early economic signals from the Australia and New Zealand Banking Group (ANZ).

China’s headline Consumer Price Index (CPI) YoY matches 2.5% expected figures in June while the monthly figures slipped below 0.0% forecast to -0.1%. Further, the Producer Price Index (PPI) extended the deflationary pressure despite recovering from -3.2% forecast to -3.0.

Read:China Consumer Price Index, YoY for June: 2.7% vs 2.5% expected

On the other hand, preliminary readings of ANZ Business Conditions for July recovered from -34.4 to -29.8 whereas ANZ Activity Outlook also improved from -25.9 to -6.8. Earlier during the day, ANZ Truckometer data for June mentions the rise of 14.5% in Heavy Traffic whereas Light Traffic Index surged 28%.

Although domestic fundamentals are brighter, the kiwi might be taking a hit as its largest customer Australia is struggling to tame the coronavirus (COVID-19) resurgence. After recalling the lockdown in Melbourne and delaying further easing of lockdown restrictions in the Australian Capital Territory, the Aussie policymakers recently extended the state of emergency until the end of August.

Elsewhere, the US cases surge over 3.0 million with the latest addition of 59,655 whereas figures from China stick to zero for the third day in a row. Further, Tokyo also snaps the seven-day run-up in numbers above 100 with recent statistics around 75 new cases.

It’s worth mentioning that the mix of data and virus woes join the US-China tussle, recently over the Hong Kong Security bill to probe the commodity-linked currencies’ strength. However, the US dollar weakness helps the bulls.

Market’s risk-tone refrain from extending the previous day’s mild optimism as S&P 500 Futures dwindles and so does the US 10-year Treasury yields. Further, stocks in New Zealand suggest mark over 1.0% loss amid a likely easing of virus-led aides and fears that the pandemic might reach the safe nation with the influx of locals from abroad. As a result, the traders will keep eyes on the US Jobless Claims and qualitative risk catalysts for fresh impetus.

Technical analysis

Only if the pair slips below June 23 top near 0.6530, it can recall the sellers targeting 0.6500. Otherwise, the bulls will keep attacking 0.6585 to aim for the late-January top near 0.6630.

Additional important levels

Overview
Today last price 0.657
Today Daily Change -6 pips
Today Daily Change % -0.09%
Today daily open 0.6576
 
Trends
Daily SMA20 0.647
Daily SMA50 0.6301
Daily SMA100 0.6184
Daily SMA200 0.6334
 
Levels
Previous Daily High 0.6581
Previous Daily Low 0.6529
Previous Weekly High 0.6539
Previous Weekly Low 0.6385
Previous Monthly High 0.6585
Previous Monthly Low 0.6186
Daily Fibonacci 38.2% 0.6561
Daily Fibonacci 61.8% 0.6549
Daily Pivot Point S1 0.6543
Daily Pivot Point S2 0.651
Daily Pivot Point S3 0.6491
Daily Pivot Point R1 0.6595
Daily Pivot Point R2 0.6614
Daily Pivot Point R3 0.6647

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD stays near 1.0650 after German and EU PMI data

EUR/USD stays near 1.0650 after German and EU PMI data

EUR/USD continues to trade at around 1.0650 in the European session on Friday. The PMI data from Germany and the Eurozone showed a recovery in the service sector's business activity in early August, helping the Euro hold its ground.

EUR/USD News

GBP/USD trades deep in red near 1.2250 after UK data releases

GBP/USD trades deep in red near 1.2250 after UK data releases

GBP/USD stays on the back foot and trades deep in negative territory at around 1.2250 on Friday. Following the disappointing Retail Sales data from the UK, August PMI surveys showed that the private sector's business activity continued to contract, weighing on Pound Sterling.

GBP/USD News

Gold rebounds but not out of the woods yet

Gold rebounds but not out of the woods yet

Gold price is recovering ground from the weekly low of $1,914 ahead of a busy Friday, packed with preliminary global PMI data releases. The United States Dollar (USD) is taking a breather even though the US Treasury bond yields are setting fresh multi-year highs.

Gold News

Space ID price succumbs to selling pressure with $3.54 million worth of ID tokens unlocked in a cliff event

Space ID price succumbs to selling pressure with $3.54 million worth of ID tokens unlocked in a cliff event

Space ID (ID) price is down 5% in the last 24 hours, succumbing to selling pressure as token holders close their positions to avoid being caught as part of exit liquidity.

Read more

US S&P Global PMI Preview: A crucial report in a data-dependent era Premium

US S&P Global PMI Preview: A crucial report in a data-dependent era

The US economic performance is stronger compared to other economies like the Eurozone, as reflected in the PMIs. On Friday, new preliminary data for September is expected to show a modest improvement in both sectors in the US and the Eurozone. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures