NZD/USD tracks CNY sell-off, weakest since January 2016

NZD/USD drops to multi-year low after the latest headlines from China triggered risk-off.
Manufacturing PMIs will offer intermediate moves ahead of the key central bank leaders’ speech at the Jackson Hole Symposium.

Anil Panchal FXStreet

With China’s onshore Yuan (CNY) plummeting to more than a decade low against the US Dollar (USD), NZD/USD follows the suit with a drop to 0.6371, the fresh bottom since January 2016, ahead of the Europe session on Thursday.

The USD/CNY pair surged to the highest since March 2008 as Xinhua quotes China’s Foreign Ministry Spokesman Geng Shuang while showing readiness to impose sanctions on the US for arms sales to Taiwan. The SCMP headlines arguing against the US terming China as a currency manipulator could also be considered fuelling the rally.

With this, Asian equities remain weakened further whereas the US 10-year Treasury yield falls back to 1.576% by the press time.

Earlier, the USD’s across the board surge on the back of the Federal Open Market Committee (FOMC) minutes weakened the pair.

Lesser than expected Nikkei Manufacturing PMI from Japan and pessimism statement from German Finance Ministry set the tone for bearish consensus relating to activity numbers for Germany, Eurozone and the US.

Other than trade news and August month manufacturing indices, investors will remain largely on the sidelines ahead of the key Jackson Hole Symposium as it will offer a stage to global central bankers to convey their future monetary policy outlook.

Technical Analysis

Unless rising back beyond September 2018 low surrounding 0.6425, bears can keep targeting the year 2016 low of 0.6348.

Additional important levels

Overview
Today last price	0.6373
Today Daily Change	-31 pips
Today Daily Change %	-0.48%
Today daily open	0.6404

Trends
Daily SMA20	0.6504
Daily SMA50	0.6594
Daily SMA100	0.6609
Daily SMA200	0.6711

Levels
Previous Daily High	0.6424
Previous Daily Low	0.6395
Previous Weekly High	0.6475
Previous Weekly Low	0.6421
Previous Monthly High	0.6792
Previous Monthly Low	0.6543
Daily Fibonacci 38.2%	0.6406
Daily Fibonacci 61.8%	0.6413
Daily Pivot Point S1	0.6391
Daily Pivot Point S2	0.6379
Daily Pivot Point S3	0.6362
Daily Pivot Point R1	0.642
Daily Pivot Point R2	0.6437
Daily Pivot Point R3	0.6449

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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