NZD/USD stays depressed below 0.6600 despite upbeat China GDP

  • NZD/USD fails to keep the previous day’s positive performance even as Chinese GDP mark welcome numbers.
  • China’s Q2 GDP and June month Industrial Production confront downbeat Retail Sales data.
  • The shift in market sentiment, amid fresh US-China tussle, also weighs on the quote.
  • A heavy economic calendar will join risk catalysts to offer a busy day.

NZD/USD recedes to 0.6560, down 0.21% on a day, after the market reacts to China’s headlines data during the early Thursday. The quote put a higher emphasis on the Retail Sales’ weakness than the strong figures of the second quarter (Q2) GDP and Industrial Production for June.

Read: Breaking: China’s GDP rebounds 3.2% YoY in Q2 vs. +2.1% expected, AUD/USD retakes 0.70 

The pair earlier reacted to the surge in Australia’s Unemployment Rate, from 7.1% to 7.4%, in June as well as increasing virus figures from Victoria. Also likely to have compressed the quote was the latest news suggesting increased tension between the US and China.

With the US indicating additional sanctions on Chinese diplomats, coupled with Beijing’s readiness to retaliate, market risk-tone sentiment seems to forget the vaccine-led optimism. On Wednesday, global traders cheered upbeat signals that the coronavirus vaccine is nearby.

Against this backdrop, S&P 500 Futures drop 0.30% to 3,210 while stocks in Asia-Pacific also register mild losses by the press time.

Traders will keep eyes on the macros concerning virus vaccine and further developments for the US-China story for immediate direction ahead of the European Central Bank’s (ECB) meeting and US data dump including Retail Sales, Jobless Claims and Philadelphia Fed Manufacturing Index.

Technical analysis

Pair’s repeated failures to rise past-0.6600 keeps the bears hopeful for witnessing June 23 top near 0.6530.

Additional important levels

Today last price 0.6561
Today Daily Change -11 pips
Today Daily Change % -0.17%
Today daily open 0.6572
Daily SMA20 0.6496
Daily SMA50 0.635
Daily SMA100 0.6195
Daily SMA200 0.634
Previous Daily High 0.6585
Previous Daily Low 0.653
Previous Weekly High 0.6601
Previous Weekly Low 0.6519
Previous Monthly High 0.6585
Previous Monthly Low 0.6186
Daily Fibonacci 38.2% 0.6564
Daily Fibonacci 61.8% 0.6551
Daily Pivot Point S1 0.654
Daily Pivot Point S2 0.6507
Daily Pivot Point S3 0.6485
Daily Pivot Point R1 0.6595
Daily Pivot Point R2 0.6617
Daily Pivot Point R3 0.665



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