FxWirePro: NZD/USD faces increasing bearish risk After weak close on Friday

• NZD/USD eased  on Monday  as batch soft data out of China weighed on  New Zealand dollar  .

• China's manufacturing activity plunged to a six-month low in August as factory gate prices dropped and manufacturers struggled to secure orders, according to an official survey released on Saturday.

•The National Bureau of Statistics Purchasing Managers' Index fell to 49.1 in August from 49.4 in July. This marks its sixth consecutive decline and the fourth month below the 50 threshold that separates growth from contraction.

• Prices of new homes in China increased at a slower pace in August, according to a private survey released on Sunday.    

•A slowdown in China is particularly detrimental for commodity currencies such as the New Zealand dollar.
 
•  Immediate resistance is located at 0.6272(Aug 30th high), any close above will push the pair towards 0.6292(23.6%fib).

•  Support is seen at 0.6222 (38.2%fib) and break below could take the pair towards 0.6165(50%fib).

 Recommendation: Good to sell around 0.6240 with stop loss of 0.6320 and target price of 0.6150