Chart - Courtesy Trading View
Spot Analysis:
NZD/USD was trading 0.20% higher on the day at 0.5823 at around 06:20 GMT.
Previous Week's High/ Low: 0.5873/ 0.5656
Previous Session's High/ Low: 0.5873/ 0.5782
Fundamental Overview:
Risk-on impulse regains some traction supporting the commodity-linked currencies. Kiwi has brushed aside downbeat China Manufacturing PMI.
China’s official NBS Manufacturing PMI for October dropped to 49.2 versus 50.0 expected and 50.1 prior.
Further, the Non-Manufacturing PMI also slumped to 48.7 well below 51.9 market forecasts and 50.6 previous readings.
Traders look forward to China activity numbers and the US Nonfarm Payrolls (NFP) (due Friday) for direction.
Anxiety ahead of the Federal Open Market Committee (FOMC) meeting announcements is likely to keep trading muted.
Technical Analysis:
- NZD/USD finds stiff resistance at 55-EMA
- Back-to-back Doji formations on the daily candles dent upside
- GMMA indicator shows bullish shift on the intraday charts
- MACD and ADX support upside in the pair
- Bullish RSI divergence raises scope for upside
Major Support and Resistance Levels:
Support - 0.5745 (21-EMA), Resistance - 0.5869 (55-EMA)
Summary: NZD/USD capped at 55-EMA. Bullish RSI divergence keeps scope for upside. Watch out for decisive break above for upside continuation.
