- NZD/USD has dropped below 61.8% Fib retracement.
- New Zealand’s manufacturing activity grew at its slowest pace in more than six years in May.
NZD/USD is currently trading at session lows near 0.6533, representing 0.45% losses on the day.
The currency pair is flashing red for the fifth consecutive day and has found acceptance below 0.6558, which is the 61.8% Fibonacci retracement of the rally from 0.64816 to 0.66815.
The losses seen today could be associated with the disappointing New Zealand’s manufacturing data released in the overnight trade.
Manufacturing activity grew at its slowest pace in more than six years in May and barely remained in expansionary territory, according to the Bank of New Zealand-Business NZ performance of manufacturing index, which fell 2.5 points to 50.2.
Further, April’s reading was revised lower to 52.7 from 53.00 and the actual reading for May missed the estimate of 54.4.
The dismal data will likely reinforce dovish RBNZ expectations and keep the NZD on the defensive during the rest of the day. The pair, however, may trim losses if China’s retail sales and industrial production figures, due for release in few minutes, blow past expectations, strengthening demand for risk assets.
Technical Levels
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