FxWirePro: NZD/USD trades below 200H MA, bearish divergence keeps scope for downside

NZD/USD chart - Trading View 

NZD/USD was trading largely unchanged on the day at 0.7198 at around 05:30 GMT, after closing 0.41% lower in the previous session.

Mixed Chinese inflation data, US-Sino tussle and President Biden's infrastructure stimulus plans keep the antipodeans in check. 

Data released earlier today showed China’s headline Consumer Price Index (CPI) eased to 1.3% YoY, missing expectations at 1.6%.

On the other side, China Producer Price Index (PPI) jumped the highest since 2008 while marking a 9.0% rally versus 8.5% expected.

Earlier in the day, Australia’s Westpac Consumer Confidence for June dropped below -4.8% previous readouts to -5.2%. 

Also, reports that China is mulling price controls on coal prices keeps the commodity currencies depressed.

Technical bias for the pair is tilted to the downside. RSI is below 50 mark and bearish divergence from price action on the daily charts keeps bias bearish.

Price action is below 200H MA, 21-EMA and cloud top. The pair is currently holding support at 55-EMA. 

Break below 55-EMA will see dip till cloud bottom. Breach below daily cloud will open downside.