Key Points
- The New Zealand dollar gained pace against the US Dollar and managed to clear the 0.7280 resistance.
- The upside move was prevented in NZDUSD near 0.7330 and a bearish trend line on the hourly chart.
- Today during the Asian session, the Caixin China Services PMI™ was released by the Markit Economics.
- The result was on the lower side, as there was a decline from the last reading of 53.4 to 53.1 in Jan 2017.
NZDUSD Technical Analysis
The New Zealand dollar followed a nice bullish path against the US Dollar and traded above the 0.7280 and 0.7300 resistance levels. The NZDUSD pair later found sellers near 0.7330 and a bearish trend line on the hourly chart.
The pair is currently correcting lower, but may find support near 0.7300 and the 38.2% Fib retracement level of the last wave from the 0.7244 high to 0.7331 high.
Moreover, the 0.7300 support also coincide with the 21 hourly simple moving average, which is why it can be considered as a good buy area.
Caixin China Services PMI
Today during the Asian session, the Caixin China Services PMI™ was released by the Markit Economics. The market was expecting a minor rise in Jan 2017 from 53.4 to 53.6.
However, the result was a bit on the lower side, as there was a decline from the last reading of 53.4 to 53.1 in Jan 2017. The report highlighted that the “Caixin China Composite PMI™ data (which covers both manufacturing and services) signalled a slight softening of growth momentum across China at the start of 2017. At 52.2 in January, the Composite Output Index fell from December’s 45-month high of 53.5 to indicate a moderate rate of expansion that was the slowest since September 2016”.
Overall, the NZUDSD pair remains supported on the downside near 0.7300 and 0.7280 in the near term.
