NZD/USD remains under pressure around 0.5870 ahead of China Trade Data

NZD/USD remains on the defensive below the 0.5900 barrier amid a stronger USD.
US ISM Services PMI climbed to 54.5 in August vs. 52.7 prior.
New Zealand’s Manufacturing Sales Q2 improved to 2.9% vs. a 2.1% drop in the previous reading.
Market players await China’s Trade Balance, US weekly Initial Jobless Claims.

Lallalit Srijandorn FXStreet

The NZD/USD pair remains under pressure and reaches the lowest level since November 2022 during the early Asian session on Thursday. The pair currently trades near 0.5872, down 0.01% on the day.

The Institute for Supply Management (ISM) revealed on Wednesday that the US ISM Services PMI climbed to 54.5 in August from 52.7 in the previous month, better than the market expectation of 52.5. This figure marks the highest reading since February. Additionally, the final readings of the S&P Global Composite dropped to 50.2 in August from 50.4 in the previous month.

The Federal Reserve (Fed) Governor Christopher Waller stated that they have further room to increase interest rates, but the data will determine whether the Fed needs to hike rates again and if it is done hiking rates.

On the Kiwi front, the latest data from Statistics New Zealand showed on Thursday that the nation’s Manufacturing Sales for the second quarter improved to 2.9% versus a 2.1% drop in the previous reading. Earlier this week, the ANZ Commodity Price for August dropped to 2.9% from a 2.6% decline in July. The New Zealand Terms of Trade Index improved to 0.4% in the second quarter, compared to a decline of 1.5% in the previous reading and an expected drop of 1.3%.

Apart from this, the disappointing Chinese economic data impact market sentiment and exert pressure on the China-proxy New Zealand Dollar (NZD). Even so, China's services activity expanded at its weakest rate in eight months in August. Tuesday, Caixin reported that the Chinese Services Purchasing Managers' Index (PMI) decreased from 54.1 in July to 51.8 in August.

Looking ahead, China’s Trade Balance will be released later in the Asian session. Also, the US weekly Initial Jobless Claims and Unit Labor Costs for the second quarter will be due on Thursday. These figures could give a clear direction for NZD/USD.

NZD/USD

Overview
Today last price	0.5873
Today Daily Change	-0.0010
Today Daily Change %	-0.17
Today daily open	0.5883

Trends
Daily SMA20	0.5951
Daily SMA50	0.6093
Daily SMA100	0.6132
Daily SMA200	0.6218

Levels
Previous Daily High	0.595
Previous Daily Low	0.5859
Previous Weekly High	0.6015
Previous Weekly Low	0.5887
Previous Monthly High	0.6219
Previous Monthly Low	0.5885
Daily Fibonacci 38.2%	0.5894
Daily Fibonacci 61.8%	0.5916
Daily Pivot Point S1	0.5844
Daily Pivot Point S2	0.5806
Daily Pivot Point S3	0.5753
Daily Pivot Point R1	0.5936
Daily Pivot Point R2	0.5989
Daily Pivot Point R3	0.6028

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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