- The NZD/USD pair trades around 0.6755 at the start of Friday’s Asian trading.
- Negative signals from Australia and China weakens the pair with mixed data at home.
- 200-day SMA level of 0.6745 seems immediate crucial support whereas 100-day SMA at 0.6770 can limit near-term upside.
NZD/USD trades near 0.6755 during early Asian sessions on Friday. The quote struggles around three week low, also near the 200-day simple moving average (SMA) as disappointment spreading through largest trading partners, namely Australia and China, joined mixed data at home. Investors now await the trade balance from China for fresh impulse.
The New Zealand Dollar (NZD) maintained its weakness off-late as pessimism surrounding Australia and China troubled the Kiwi. Disappointing prints of the Australian and Chinese data, RBA Governor’s dovish statement and China’s downgraded forecast to economic growth are all playing their role to challenge trade sentiment of the NZD buyers. Though, signals of a US-China trade deal is likely limiting an extensive plunge by the Kiwi.
Recently, New Zealand manufacturing and construction data flashed mixed signals. Manufacturing activity dropped -0.5% from 2.0% QoQ during the final quarter of the last-year whereas construction activity registered +2.7% growth compared to +0.7% earlier outcome during the same period.
Coming up on the investor’s radar will be February month trade balance details from China. Consensus favor $26.38 billion surplus figure against $39.16 billion prior. The exports may have dropped -4.8% YoY versus +9.1% earlier expansion but the decline in import could soften to -1.4% from -1.5%.
NZD/USD Technical Analysis
Unless positive a daily closing under 200-day SMA level of 0.6745, chances of the NZD/USD’s pullback towards 100-day SMA level of 0.6770 and then to 0.6800 can’t be denied.
Alternatively, a downside break of 0.6745 might not hesitate to recall 0.6720 and 0.6700 supports as quotes.
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