- Kiwi weighed down by recent jawboning by RBNZ's Wheeler. Continues to underperform despite upbeat China PMI data.
- China's August Caixin PMI unexpectedly rose to 51.6, strongest since Feb. The outcome was above forecasts at 50.9.
- NZD/USD continues slide, trades 0.21% lower on the day at 0.7161 at around 06:15 GMT.
- The pair has taken 200-DMA support at 0.7131 and edged higher, bias remains bearish.
- Technically we see weakness in the pair. Weekly charts are heavily bearish. Break below 200-DMA will see extension of downside.
Support levels - 0.7131 (200-DMA), 0.71 (61.8% Fib retrace of 0.68176 to 0.7558 rally), 0.7030 (weekly cloud base)
Resistance levels - 0.7182 (100-DMA), 0.7208 (5-DMA), 0.7268 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-100-DMA-support-hits-2-month-lows-at-07163-bias-lower-876360) has hit TP1.
Recommendation: Bias lower. Watch out for break below 200-DMA for further weakness. Hold for targets.
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