NZD/USD drops below 0.5950 amid broad USD strength

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  • US Dollar Index continues to climb higher toward 100.
  • Upbeat Chinese PMI data fail to help NZD find demand.
  • Coming up: CB Consumer Confidence and Chicago PMI data from US.

After failing to hold above the 0.6000 handle, the NZD/USD pair extended its slide and touched a fresh daily low of 0.5945. As of writing, the pair was trading a couple of pips above that level, erasing 1% on a daily basis.

V-shaped recovery in China?

The data from China on Tuesday revealed a sharp recovery in the private sector’s business activity. The Manufacturing PMI in March jumped to 52.3 from 29.6 and the Non-Manufacturing PMI improved to 52.3 from 29.6 with both figures surpassing market expectations by wide margins. 

Despite the upbeat Chinese data, the pair struggled to gain traction as the broad-based USD strength allowed the bearish pressure to remain intact.

The US Dollar Index, which closed the first day of the week with a gain of 0.75%, continues to push higher and was last seen adding 0.7% on the day at 99.72.

During the American trading hours, the Chicago PMI and the Conference Board’s Consumer Confidence Index from the US will be looked upon for fresh impetus.

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