- NZD/USD trades near 0.6800 mark on early Tuesday.
- Weak GDP forecast and softer than expected services PMI from China dragged the pair down to the intra-day low.
- Developments surrounding a trade pact between the US and China can determine near-term moves.
The NZD/USD pair drops to 0.6800 during the early Asian session on Tuesday. The pair failed to hold its previous strength as details/updates from China challenged buyers earlier ruling the sentiment based on the US-China trade deal developments.
Earlier during Tuesday, the Chinese parliament, National People’s Congress, released a report at the opening session of its annual meeting that lowered down the gross domestic product (GDP) estimate to 6.0-6.5% range for 2019. The governments expected 6.5% GDP growth for 2018 which came out as three-decade low of 6.6%.
Following the GDP revision news, February month Caixin Services PMI also grabbed sellers’ attention. The private services purchasing manager index (PMI) lagged behind 53.8 market consensus and 53.6 prior by flashing three month low of 51.1.
China is the world’s largest commodity player and also the second largest consumer to New Zealand. Hence, any negatives from the dragon nation can easily disappoint the Kiwi bulls.
While recent data from China aren’t well to accept, investors may now emphasize more on the trade-deal to look for clues to recover the latest losses.
NZD/USD Technical Analysis
Failure to successful surpass the 0.6828 resistance-line signals the pair’s pullback to 0.6790 support-line joining lows marked on February 12 and 22. A break of 0.6790 can further weaken the pair towards 0.6760 and 0.6715.
Alternatively, break of 0.6828 trend-line resistance can trigger the pair’s upside to 0.6855 and then to 0.6870 levels.