• NZD/USD dropped towards 0.5800 level on Monday as the Kiwi dollar weakened following China's inflation data, which pointed to further economic weakness.
• Chinese data released on Monday showed that consumer prices unexpectedly fell by 0.6% in November, driving annual inflation down to just 0.2%.
• Concerns over China's economy put pressure on the Kiwi, as data showed that the New Zealand’s biggest trading partner was experiencing ongoing deflationary pressures.
•At GMT 06.11,the kiwi dollar was down 0.18% at 0.5812 against greenback .
• Immediate resistance is located at 0.5845(38.2%fib), any close above will push the pair towards 0.5878 (50%fib).
• Support is seen at 0.5804(23.6%fib) and break below could take the pair towards 0.5780(Lower BB).
Recommendation: Good to sell around 0.5820, with stop loss of 0.5900 and target price of 0.5730
