FxWirePro: NZD/USD hits new multi-week lows, more downside on cards

Chart - Courtesy Trading View 

NZD/USD was trading 0.34% lower on the day at 0.6096 at around 10:30 GMT.

The pair has hit fresh 7-week lows below 0.61 handle, technical indicators suggest further weakness.

China's Caixin manufacturing purchasing managers index (PMI) printed at 49.5 for August, compared with July’s reading of 50.4, missing expectations at 50.2.

Chinese manufacturing activity fell for a second straight month, slipping into contraction in August, as COVID lockdowns and energy crunch weighed on activity.

Investors have turned risk-averse. Focus now on the US ISM Manufacturing PMI for August, expected 52.8 versus 52.0 prior, ahead of Friday’s US Nonfarm Payrolls (NFP).

Momentum is strongly bearish, volatility is high and rising. GMMA indicator shows major and minor trend are strongly bearish.

Support levels - 0.6060 (July 14th low), 0.6036 (Lower BB)

Resistance levels - 0.6124 (5-DMA), 0.6208 (21-EMA)

Summary: NZD/USD trades with a bearish bias. Scope for retest of yearly lows at 0.6060.