Back
1 Jul 2015
NZD/USD testing highs above 0.68, shrugs off poor China PMI
FXStreet (Mumbai) - The New Zealand dollar held on to its overnight recovery mode versus the American dollar in the mid-Asian trades, now lifting NZD/USD to fresh session highs above 0.68 handle. The Kiwi managed to recover lost ground and trades firmer largely on profit-taking amid a muted US dollar.
NZD/USD supported at 0.6761
Currently, the NZD/USD pair edges 0.57% higher to trade at fresh session highs of 0.6810, recovering from a five year low reached at 0.6745 on Tuesday. NZD/USD staged a solid comeback and remains strongly bid as traders resorted to profit-taking on their NZD shorts after the recent slump.
Moreover, traders chose to ignore the China PMI figures which revealed that the HSBC-Markit China Manufacturing Purchasing Managers' Index (PMI) rose from 49.2 in May to 49.4 in June. However, the final index reading came in weaker than the preliminary reading of 49.6. China is New Zealand’s top trading partner.
The Kiwi plunged to fresh five year low on Tuesday after a business confidence survey and building consents data added to the case for further policy easing. Also monetary policy divergence between NZ and the US also kept the New Zealand dollar undermined.
In the day ahead, markets now look forward to a batch of US economic data in absence of any NZD economic news today.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6856 (June 30 High) levels and above which it could extend gains 0.6882 (June 29 High) levels. To the downside immediate support might be located at 0.6745 (June 30 Low) below that at 0.6700 levels.
NZD/USD supported at 0.6761
Currently, the NZD/USD pair edges 0.57% higher to trade at fresh session highs of 0.6810, recovering from a five year low reached at 0.6745 on Tuesday. NZD/USD staged a solid comeback and remains strongly bid as traders resorted to profit-taking on their NZD shorts after the recent slump.
Moreover, traders chose to ignore the China PMI figures which revealed that the HSBC-Markit China Manufacturing Purchasing Managers' Index (PMI) rose from 49.2 in May to 49.4 in June. However, the final index reading came in weaker than the preliminary reading of 49.6. China is New Zealand’s top trading partner.
The Kiwi plunged to fresh five year low on Tuesday after a business confidence survey and building consents data added to the case for further policy easing. Also monetary policy divergence between NZ and the US also kept the New Zealand dollar undermined.
In the day ahead, markets now look forward to a batch of US economic data in absence of any NZD economic news today.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6856 (June 30 High) levels and above which it could extend gains 0.6882 (June 29 High) levels. To the downside immediate support might be located at 0.6745 (June 30 Low) below that at 0.6700 levels.