Chart - Courtesy Trading View
Spot Analysis:
NZD/USD was trading 0.76% higher on the day at 0.6345 at around 09:00 GMT.
Previous Week's High/ Low: 0.6289/ 0.6087
Previous Session's High/ Low: 0.6313/ 0.6188
Fundamental Overview:
Kiwi has picked up strength on upbeat Caixin Manufacturing PMI and the reopening of the Chinese economy.
China’s Caixin Manufacturing PMI rose to 49.4 in November, more than expectations at 48.9 and 49.2 prior, but still remains in the contraction region for the fourth consecutive month.
Further, significant improvement in investors’ risk appetite post-Federal Jerome Powell's commentary to moderate pace of rate hikes, supporting the pair higher.
Also, signs of the gradual opening of the Chinese economy led by relaxations in zero Covid-19 policy have also strengthened the New Zealand Dollar.
Technical Analysis:
- NZD/USD has broken above 200-DMA
- MACD and ADX support upside in the pair
- Momentum is bullish, Chikou span is biased higher
- GMMA indicator shows major and minor trend are bullish
Major Support and Resistance Levels:
Support - 0.6287 (200-DMA), Resistance - 0.6372 (Upper BB)
Summary: NZD/USD trades with a bullish bias. Close above 200-DMA will aid further upside in the pair.
