FxWirePro: NZD/USD snaps 2-day upside, poor Chinese data dents Kiwi
NZD/USD chart - Trading View
NZD/USD was trading 0.48% lower on the day at 0.7210 at around 09:50 GMT, outlook turning bearish.
The pair snapped 2-days of upside and slipped lower from session highs at 0.7250 after mixed China data dump earlier today.
China Retail Sales slip beneath 34.2% prior and 24.9% forecast to 17.7% YoY whereas Industrial Production matched 9.8% market consensus versus 14.1% previous readouts.
Poor China data, Geopolitical tussles in the Middle East and fears of escalating Aussie-China tension weigh on the antipodeans.
Business NZ performance of Service Index rose to 61.2 in April as compared to 52.9 in the previous month. Overseas visitor arrivals in New Zealand fell 97.4% YoY.
Price action has tested cloud top at 0.72 mark. Retrace into daily cloud will drag the pair lower.
The pair has slipped below 200H MA. Bearish RSI divergence weighs on the pair. Major trend is neutral. Bearish continuation only below 200-DMA.
Support levels - 0.7164 (55-EMA), 0.7105 (110-EMA), 0.7055 (Trendline)
Resistance levels - 0.7225 (200H MA), 0.73, 0.7323 (Upper W BB)
Summary: Covid headlines and RBA meeting minutes will influence price action. Watch out for break below 0.72 handle for weakness.