FxWirePro: NZD/USD trades rangebound above 0.70 handle, ignores upbeat China’s Caixin Manufacturing PMI

NZD/USD chart - Trading View 

NZD/USD was trading in a narrow range on Tuesday, with session high at 0.7051 and low at 0.7008.

The pair was consolidating above the 0.70 handle and remains largely muted to upbeat China’s Caixin Manufacturing PMI data.

Data released earlier today showed activity in China’s factory sector accelerated at the fastest pace in a decade in November. 

The Caixin/Markit Manufacturing Purchasing Managers’ Index(PMI) rose to 54.9 from October’s 53.6, beating analysts' forecast for a dip to 53.5.

Details of the report showed gauges of both total new orders and factory output marked 10-year highs. New export orders rose more modestly.

Powell’s testimony and US PMI data later in the NY session to offer clear direction to the pair.

Major bias is strongly bullish, but overbought conditions may cause some pullbacks. Watch out for close below 5-DMA (0.7013) for weakness. Next major support lies at 200H MA at 0.6975. 

Resumption of upside will likely take the pair higher to test 78.6% Fib at 0.7111. Bullish invalidation only below 200W MA.