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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	0.6831
Today Daily Change	-0.0002
Today Daily Change %	-0.03%
Today daily open	0.6833

Trends
Daily SMA20	0.6786
Daily SMA50	0.6933
Daily SMA100	0.6974
Daily SMA200	0.7035

Levels
Previous Daily High	0.6858
Previous Daily Low	0.6815
Previous Weekly High	0.6891
Previous Weekly Low	0.6702
Previous Monthly High	0.7199
Previous Monthly Low	0.6773
Daily Fibonacci 38.2%	0.6842
Daily Fibonacci 61.8%	0.6831
Daily Pivot Point S1	0.6812
Daily Pivot Point S2	0.6792
Daily Pivot Point S3	0.6769
Daily Pivot Point R1	0.6855
Daily Pivot Point R2	0.6878
Daily Pivot Point R3	0.6898

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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