NZD/USD slips to near 0.6300 despite better-than-anticipated Caixin Manufacturing PMI

NZD/USD has slipped to near 0.6300 as the US Dollar Index has climbed above 103.60.
A release of the upbeat Caixin Manufacturing PMI at 49.0 has failed to support the New Zealand Dollar.
Investors have turned cautious after the New Year celebrations and a long weekend.

Sagar Dua FXStreet

The NZD/USD pair has witnessed a sell-off in the Asian session despite upbeat China’s Caixin Manufacturing PMI data. The Kiwi asset has dropped to near the round-level support of 0.6300 despite figures remaining better than expectations but lower than the former release. The release of the economic data at 49.0 vs. the projections of 48.8 might support the New Zealand Dollar ahead, being one of the leading trading partners of China.

Going forward, the status of China’s promotion of foreign trade and capital attraction will remain in focus. China’s State Administration of Foreign Exchange (SAFE) Director Pan Gongsheng said on Tuesday, “China will use exchange rate policy tools to promote foreign trade, expand foreign capital stock and to manage its FX reserve assets in 2023,”

Meanwhile, the risk-perceived assets are facing the heat of long weekend-inspired volatility. The risk appetite of the market participants has trimmed dramatically as investors are cautious in making positions before settling in the market. S&P500 futures have witnessed decent selling pressure from the market participants as investors are concerned above economic prospects in CY2023.

The US Dollar Index (DXY) has climbed to near 103.50 after a recovery from the crucial support of 103.20. After the Caixin Manufacturing PMI release, investors will shift their focus toward the United States ISM Manufacturing PMI data, which will be released on Wednesday.

NZD/USD

Overview
Today last price	0.6304
Today Daily Change	-0.0022
Today Daily Change %	-0.35
Today daily open	0.6326

Trends
Daily SMA20	0.6347
Daily SMA50	0.6173
Daily SMA100	0.604
Daily SMA200	0.6238

Levels
Previous Daily High	0.6356
Previous Daily Low	0.6309
Previous Weekly High	0.6373
Previous Weekly Low	0.6253
Previous Monthly High	0.6514
Previous Monthly Low	0.623
Daily Fibonacci 38.2%	0.6327
Daily Fibonacci 61.8%	0.6338
Daily Pivot Point S1	0.6305
Daily Pivot Point S2	0.6283
Daily Pivot Point S3	0.6258
Daily Pivot Point R1	0.6352
Daily Pivot Point R2	0.6377
Daily Pivot Point R3	0.6399

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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