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FxWirePro: NZD/USD extends gains above 200W MA, ignores weaker than forecast China inflation data

NZD/USD chart - Trading View NZD/USD is extending gains for the 7th straight session, outlook remains bullish. The major was trading 0.26% higher on the day at 0.6836 at around 05:10 GMT, after closing 0.73% higher in th…

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FxWirePro: NZD/USD extends gains above 200W MA, ignores weaker than forecast China inflation data
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NZD/USD chart - Trading View 

NZD/USD is extending gains for the 7th straight session, outlook remains bullish.

The major was trading 0.26% higher on the day at 0.6836 at around 05:10 GMT, after closing 0.73% higher in the previous session.

NZD's resilience could be associated with the pro-risk environment as coronavirus vaccine breakthrough keep sentiment buoyed.

The investor sentiment was buoyed by reports that a coronavirus vaccine developed by Pfizer Inc. and BioNTech SE prevented over 90% of infections.

On the data front, China Producer Price Inflation or factory-gate prices fell by 2.1% year-on-year in October versus an expected drop of 2%.

The Consumer Price Index declined by 0.3% month-no-month, missing the expectation for a 0.2% rise and bringing the annualized growth to 0.5% from September's 0.8%.

Data highlights a weakness in China's industrial demand and raises doubts on the nation's economic recovery.

Technical bias for the pair remains bullish. Price action is extending gains above 200W MA. Momentum studies are bullish. 

Volatility is rising and scope for continuation of upside. Next major resistance lies at 110M EMA at 0.6968 ahead of 78.6% Fib at 0.7111.

5-DMA is immediate support at 0.6773. Retrace below 200W MA at 0.6768 negates any further bullishness.
 

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