NZDUSD Jumps On Strong Chinese Manufacturing Data

NZDUSD jumps 0.57% at 0.6454 getting a hand by stronger Chinese data. The China Caixin Manufacturing PMI came in at 51.8 beating forecasts of 51.4 in November. The China manufacturing PMI came in at 51.8 the October reading was at 51.7.  New Zealand economy shows signs of improvement, last week the New Zealand ANZ Business Confidence which came in at -26.4 topping forecasts of -30.8 for November, while the Activity Outlook came in at 12.9% beating expectations of -3.6%.

The NZDUSD runs higher after the RBNZ kept interest rates unchanged in it’s latest policy meeting. Economists now expect that Reserve Bank of New Zealand will cut the interest rate cut in the first quarter of 2020, while if the global growth continues to be under pressure, RBNZ might proceed with an additional reduction to 0.5% during 2020.

Later today traders await the release of US ISM Manufacturing PMI that will reveal a picture of the US industrial sector, and will add to forex volatility. The developments in US-China trade talks will also affect the pair; headlines are mixed today as US shows no signs that will roll back the tariffs to Chinese products, while the move last week from President Trump to sign the Hong Kong legislation backing protesters has negative impact on negotiations.

NZDUSD capitalize today the positive macro news from China as the pair has a high correlation with headlines around the Chinese economy and US-China trade talks.

Don’t miss a beat! Follow us on Telegram and Twitter.

NZDUSD Support and Resistance Levels

NZDUSD forms today a strong white candle on better manufacturing PMI from China driving the pair to fresh monthly highs. The pair pierced the 100-day moving average on Friday giving the bulls the upper hand and now targets the November 4th high at 0.6465. A break above that level will open the way for a test of the next resistance, the  200-day moving average at 0.6545.

On the other hand, today’s low at 0.6423 will provide some support for the pair, while the 100-day moving average will provide a strong resistance at 0.6415. Shart position that will sell the pair below the 100-day moving average will target the 50-day moving average at 0.6358.

NZDUSD outlook is positive for the short term; bulls might initiate a long position if the pair manages to close above the daily high, while traders who expect a correction in the pair might initiate a short position If the pair closes below the 100-day moving average.

NZDUSD price chart

NZDUSD Jumps On Strong Chinese Manufacturing Data
NZDUSD Jumps On Strong Chinese Manufacturing Data

More content

Share