FxWirePro: AUD/NZD tumbles lower after rejection at Triangle top, kiwi buoyed on RBNZ’s upbeat economic outlook
FxWirePro: NZD/USD set to extend downside after breach at 21-EMA, risk-off mood and US dollar strength weigh
NZD/USD chart - Trading View
NZD/USD faded a marginal bounce in early trade and has slipped lower from session highs at 0.7139 to trade at 0.7123 at around 04:30 GMT.
Kiwi unimpressed after China’s activity numbers flashed mixed results. Risk-off mood and broad-based US dollar strength also weigh.
Data released earlier on Monday showed China’s Q4 GDP and December Industrial Production improved, but Retail Sales missed expectations.
Risk weakens amid cautious sentiment ahead of new government in the US. Also, the coronavirus woes and doubts over China’s economic improvement weigh on the upside.
The pair has broken below 21-EMA on Friday's trade and is set to extend downside as technical indicators support downside.
Stochs and RSI are biased lower and RSI has slipped below 50 mark. Analysis of GMMA indicator shows near-term bias has turned bearish.
MACD shows bearish crossover on signal line and 'Bearish Divergence' on Stochs and RSI on the daily charts adds to the bearish bias.
The pair now eyes next major support at 50-DMA at 0.7054 ahead of 55-EMA at 0.7031. Major trend is bullish, but breach below daily cloud could change near-term dynamics.