FxWirePro: NZD/USD drops from 7-week highs, antipodeans dented by weak China PMI data

NZD/USD chart - Trading View 

NZD/USD was trading 0.23% lower on the day at 0.6118 at around 09:40 GMT.

The pair is likely consolidating previous session's gains, bias higher as long as pair holds above daily cloud.

Antipodeans weaken across the board after softer-than-expected China PMI data.

National Bureau of Statistics (NBS) report earlier today showed China December Caixin manufacturing PMI came in at 49.4 vs. 50.1 last.

Meanwhile, purchasing managers' index (PMI) for China's manufacturing sector arrived at 50.8 in April, while Non-Manufacturing PMI rose from 52.3 prior to 53.2.

On the other hand, the ANZ Business Confidence for New Zealand, for April, recovered from -69.5 expected to -66.6 but Activity Outlook dropped below -26.7% previous mark to -55.1%.

Cloud breakout has raised scope for further upside in the pair. Momentum studies are bullish.

Resumption of upside will see test of 61.8% Fib at 0.6264. Retrace below 55-EMA to see weakness. Breach below cloud confirms bearish resumption.