NZD/USD refreshes 2.5-year high on strong China PMI above 0.7400


  • NZD/USD rises to the fresh high since June 2018 after China data.
  • China’s NBS Manufacturing PMI, Non-Manufacturing PMI beat market forecasts in November.
  • ANZ Business Confidence, Activity Outlook also came in positive for November.
  • Bulls cheer vaccine hopes amid NZ’s ability to overcome the pandemic and RBNZ’s cautious optimism.

NZD/USD takes the bids near 0.7050 during the Asian session on Monday. In doing so, the kiwi pair rises to a fresh high since June 2018 after China’s official activity numbers backed the recent upside momentum.

China’s NBS Manufacturing PMI grew past-51.5 forecast and 51.4 previous to 52.1 while the Non-Manufacturing PMI crossed 56.2 prior and 52.1 expected with 56.4 in November.

Read: China data dump beats expectations

Earlier in the day, New Zealand’s ANZ Business Confidence, Activity Outlook numbers for November also marked trade-positive figures. Details suggest that the Business Confidence recovered from -15.6 to -6.9 whereas Activity Outlook rose past-4.6% previous readouts to 9.1%.

Global trade sentiment remains cautiously optimistic amid hopes of the coronavirus (COVID-19) getting boosts from likely approval from various regulatory authorities in the UK, Europe and the US. However, fears of the surge in the pandemic before the vaccine hit the floor join Western tussle with China and Brexit uncertainty to challenge the bulls.

Even so, New Zealand’s NZX 50 part ways from S&P 500 Futures and major Asia-Pacific indices while making 0.30% intraday gains. In the background, we can mention that the Jacinda Ardern-led government’s ability to tame the deadly virus at home joins the RBNZ’s clear no for negative rates.

Moving on, risk catalysts are likely to remain as the key drivers while the bulls may also cheer the US dollar weakness.

Technical analysis

The mid-2018 top, close to 0.7065, lures the bulls unless the quote declines below the 0.7000 threshold.

Additional important levels

Overview
Today last price 0.704
Today Daily Change 13 pips
Today Daily Change % 0.19%
Today daily open 0.7027
 
Trends
Daily SMA20 0.6866
Daily SMA50 0.6719
Daily SMA100 0.6677
Daily SMA200 0.6433
 
Levels
Previous Daily High 0.704
Previous Daily Low 0.6998
Previous Weekly High 0.704
Previous Weekly Low 0.6897
Previous Monthly High 0.6726
Previous Monthly Low 0.6546
Daily Fibonacci 38.2% 0.7024
Daily Fibonacci 61.8% 0.7014
Daily Pivot Point S1 0.7003
Daily Pivot Point S2 0.6979
Daily Pivot Point S3 0.696
Daily Pivot Point R1 0.7045
Daily Pivot Point R2 0.7064
Daily Pivot Point R3 0.7088

 

 

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