NZD/USD remains below 200-day MA despite dovish Fed, China manufacturing PMI stalled in November

  • The NZD/USD pair remains below the 200-day moving average for the third day straight.
  • The Fed's dovish shift has likely been priced-in.
  • China factory growth unexpectedly stalled in November.

Kiwi is struggling to move past the 200-day moving average (MA) for the third day straight.  

The inability to cross the long-term MA hurdle is somewhat surprising, as the Fed minutes, released yesterday, underpinned the notion that the ongoing tightening cycle could end soon.

The market, however, was never expecting more than two rate hikes in 2019. Further, investors had scaled back expectations to just one rate hike well before Powell's speech. Simply put, the Fed's dovish shift has already been priced in. This possibly explains NZD's failure to cut through the 200-day MA.

Also, official China PMI, released at 01:00 GMT, showed the manufacturing sector unexpectedly stalled in November, underscoring concerns about a slowing economy. The dismal Chinese data could be capping the upside in NZD.

That said, the long-term MA resistance could be scaled if the equities pick up a strong bid ahead of Trump-Xi meeting.

NZD/USD Technical Levels

NZD/USD

Overview:
    Today Last Price: 0.6862
    Today Daily change: 5.0 pips
    Today Daily change %: 0.0729%
    Today Daily Open: 0.6857
Trends:
    Previous Daily SMA20: 0.678
    Previous Daily SMA50: 0.6645
    Previous Daily SMA100: 0.666
    Previous Daily SMA200: 0.687
Levels:
    Previous Daily High: 0.6885
    Previous Daily Low: 0.6837
    Previous Weekly High: 0.6876
    Previous Weekly Low: 0.6767
    Previous Monthly High: 0.663
    Previous Monthly Low: 0.6424
    Previous Daily Fibonacci 38.2%: 0.6855
    Previous Daily Fibonacci 61.8%: 0.6867
    Previous Daily Pivot Point S1: 0.6834
    Previous Daily Pivot Point S2: 0.6812
    Previous Daily Pivot Point S3: 0.6786
    Previous Daily Pivot Point R1: 0.6882
    Previous Daily Pivot Point R2: 0.6908
    Previous Daily Pivot Point R3: 0.693

 

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