- 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
Today Last Price: 0.6862
Today Daily change: 5.0 pips
Today Daily change %: 0.0729%
Today Daily Open: 0.6857
Previous Daily SMA20: 0.678
Previous Daily SMA50: 0.6645
Previous Daily SMA100: 0.666
Previous Daily SMA200: 0.687
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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