NZD/USD Price Analysis: Remains sidelined around 200-SMA after China PMI
|- NZD/USD paid a little heed to China’s official PMI data for December.
- China’s NBS Manufacturing PMI came in upbeat but Non-Manufacturing PMI missed expectations.
- Sustained break of 100-SMA, previous resistance from November 15 keeps buyers hopeful.
- Bulls need to over 0.6860 to excel further, 0.6735 acts as extra support to watch.
NZD/USD takes rounds to 0.6830 during Friday’s Asian session. In doing so, the kiwi pair fails to cheer upbeat PMI data from China amid technical challenges and year-end liquidity crunch.
China’s NBS Manufacturing Purchasing Managers' Index (PMI) grew past the 50.1 forecast and prior release to 50.3 in December. The Non-Manufacturing PMI rose to 52.7 versus 52.3 previous readouts but eased below 53.1 market consensus.
NZD/USD struggles to overcome a three-month-old horizontal hurdle surrounding 0.6860 even as the bullish MACD signals, sustained break of the previous resistance line from mid-November and a clear run-up beyond 100-SMA favors the pair bulls.
It’s worth noting that the 0.6900 round figure, also comprising the late November’s swing high, acts as a validation point for a north-run towards the 0.7000 psychological magnet that also encompasses early November’s swing lows.
Alternatively, the resistance-turned-support line and the 100-SMA, around 0.6805 and 0.6780 in that order, restricts short-term downside of the kiwi pair.
Should the quote drops below 0.6780, a horizontal line from December 06, close to 0.6730 will stop the NZD/USD bears before directing them to 2021 bottom of 0.6701.
To sum up, NZD/USD trades near the key make or break point with buyers having an upper hand.
NZD/USD: Four-hour chart
Trend: Sideways
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.