FxWirePro: NZD/USD Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.77% lower on the day at 0.6416 at around 11:05 GMT.

Previous Week's High/ Low: 0.6525/ 0.6437

Previous Session's High/ Low: 0.6508/ 0.6462

Fundamental Overview:

New Zealand dollar sold off after new Prime Minister (PM) Chris Hipkins announces a Cabinet reshuffle.

The pair fails to benefit from upbeat China NBS PMI data as risk profile remains sluggish.

China data from China showed NBS Manufacturing PMI printed at 50.1 vs. expected 49.8 and compared to a prior reading of 47.

China NBS Non-Manufacturing PMI also came in upbeat with a 54.4 figure compared to 51.0 expected and 41.6 previous readings.

Focus later today will be on fourth-quarter (Q4) US Employment Cost Index (ECI) and the Conference Board’s Consumer Confidence gauge for January for clear directions.

Wednesday’s New Zealand Q4 employment data and the Federal Open Market Committee (FOMC) monetary policy meeting will be crucial for price movement.

Technical Analysis:

- 5-DMA is turning and is now biased south

- MACD is on verge of bearish crossover on signal line

- Stochs show bearish rollover from overbought levels

- GMMA indicator has turned bearish on the intraday charts

Major Support and Resistance Levels:

Support - 0.6408 (20-DMA), Resistance - 0.6467 (5-DMA)

Summary: NZD/USD trades with a bearish bias. Watch out for break below 20-DMA for further weakness.