FxWirePro: NZD/USD extends gains, on track to test 200-DMA

Chart - Courtesy Trading View 

NZD/USD was trading 0.63% higher on the day at 0.6239 at around 13:00 GMT.

Kiwi largely ignores poor New Zealand Building Permits and China PMI data, NZD/USD gains on weaker US dollar.

New Zealand’s seasonally adjusted Building Permits slumped to 10.7% MoM in October versus a 2.4% expected increase and 3.6% prior growth. 

Also, China’s officials NBS Manufacturing PMI dropped to 48.0 in November versus 49.2 expected and 49.0 prior whereas the Non-Manufacturing PMI fell to 46.7 from 48.7 prior and 51.7 anticipated.

Softer US data released overnight also weighs on the greenback. Conference Board (CB) Consumer Confidence Index dropped to 100.2 in November versus 102.2 prior (revised down from 102.5).

Major focus today is on US Federal Reserve (Fed) Chairman Jerome Powell’s first speech since the November meeting.

The policymaker is likely to defend the central bank’s rate hike trajectory which could raise concerns about the nation's economic growth. 

Also, Friday's Nonfarm Payrolls (NFP) as well as the second readings of the US Gross Domestic Product (GDP) for the third quarter (Q3) will be crucial for price movement.

Price action is above 200H MA and GMMA indicator shows major and minor trend are bullish. The pair is on track to test 200-DMA. Decisive break above will fuel further gains.