NZD/USD remains bid near 0.66 after upbeat China Services PMI

NZD/USD is better bid on broad-based dollar weakness.
Caixin's China Services PMI ticked higher in September.
The upbeat data may bolster bullish pressures around the NZD.

Omkar Godbole FXStreet Contributor

NZD/USD continues to trade in green at session highs near 0.66 following an upbeat China economic data release.

The Caixin Services PMI rose to 54.8 in September from August's 54.3/. A reading above 520 indicates expansion.

In other words, the service sector expansion picked up the pace in August.

The data indicates a continued recovery in the world's second-largest economy from the coronavirus-induced contraction in the first quarter.

As such, commodity dollars like the NZD may extend gains. At press time, the NZD/USD pair is trading near 0.66, having found bids at 0.6572 early Friday.

Renewed expectations for additional US fiscal stimulus and the resulting risk-on action in the global equities have pushed the greenback lower and powering gains in NZD/USD since early Asia.

Analysts at Goldman Sachs believe equity markets face the risk of substantial downside in the runup to the Nov. 3 US Presidential Elections. If stocks do come under pressure, the NZD/USD pair will likely follow suit.

Technical levels

NZD/USD

Overview
Today last price	0.6598
Today Daily Change	0.0023
Today Daily Change %	0.35
Today daily open	0.6575

Trends
Daily SMA20	0.6635
Daily SMA50	0.6631
Daily SMA100	0.6553
Daily SMA200	0.6389

Levels
Previous Daily High	0.6597
Previous Daily Low	0.6546
Previous Weekly High	0.6658
Previous Weekly Low	0.6539
Previous Monthly High	0.6799
Previous Monthly Low	0.6511
Daily Fibonacci 38.2%	0.6565
Daily Fibonacci 61.8%	0.6578
Daily Pivot Point S1	0.6548
Daily Pivot Point S2	0.6522
Daily Pivot Point S3	0.6497
Daily Pivot Point R1	0.6599
Daily Pivot Point R2	0.6624
Daily Pivot Point R3	0.665

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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