NZD/USD retreats from trendline resistance after mixed China data

Omkar Godbole FXStreet Contributor

NZD/USD pair retreated from the descending trend line (drawn from Sep 22 high – Oct 4 high) resistance of 0.7230 after Q3 Chinese GDP matched estimates and industrial production declined.

Third straight day of gains

At 0.7215, the currency pair is up for the third consecutive day. Kiwi received a boost this week from a slight uptick in dairy prices at yesterday’s GDT auction and upbeat domestic inflation data.

However, data released in China was mixed. GDP matched estimates by coming-in at 6.7%, however, Industrial production cooled to 6.1% compared to expected rise to 6.4% from previous figure of 6.3%. Meanwhile, retail sales printed slightly better-than-expected at 10.7%. The mixed data failed to secure a breach of falling trend line hudle.

NZD/USD Technical Levels

A break above 0.7230 (falling trend line hurdle) would open doors for 0.7256 (Aug 2 high) above which the spot could target 0.73 (zero figure). On the other hand, breach of Asian session low of 0.7189 could yield 0.7135 (Oct 6 low), under which major support is seen at 0.7087 (Aug 8 low).

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.