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FxWirePro: NZD/USD resumes upside after brief consolidation, US dollar weakness supports gains

Chart - Courtesy Trading View 

NZD/USD was trading 0.79% higher on the day at 0.6505 at around 07:05 GMT, bias is bullish.

The pair shows upside resumption after a brief period of consolidation at 21-EMA support.

According to data published by the National Bureau of Statistics (NBS) on Friday, China's industrial profits shrank 8.5% from a year earlier, swinging from a 12.2% gain in March.

US preliminary Q1 2022 Annualized GDP eased to -1.5%, below -1.4% prior and -1.3% forecasts, whereas the Pending Home Sales slumped in April, to -3.9% versus -2.0% forecast.

US Dollar Index weakness supports the pair higher ahead of US PCE data due later today. The annualized figure is expected to remain unchanged at 6.65 while the monthly figure could slip to 0.8%.

On a monthly basis, US Core Personal Consumption Expenditure (PCE) Price Index for April, expected at 4.9% YoY versus 5.2% prior.

Bulls test 383.2% Fib at 0.6528, technical indicators are bullish, scope for further gains.

Support levels - 0.6481 (5-DMA), 0.6451 (21-EMA)

Resistance levels - 0.6528 (38.2% Fib), 0.6574 (55-EMA)

Summary: NZD/USD trades with a bullish bias. Scope for test of 55-EMA at 0.6574. 

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