• The NZD/USD edged higher on Friday as higher commodities price and an improving economic outlook in China provided some support to kiwi dollar.
• President Xi Jinping New Year's address on Tuesday that China would implement more proactive policies to promote growth in 2025.
• China's December survey showed weak manufacturing growth, but services and construction fared better, indicating that policy stimulus is supporting these sectors.
• The New Zealand dollar often used as a proxy for China's currency was up 0.16% to $0.5606, but was headed for a weekly loss of 0.66%.
• Immediate resistance is located at 0.5646(38.2%fib), any close above will push the pair towards 0.5850(50%fib).
• Support is seen at 0.5588 (23.6%fib) and break below could take the pair towards 0.5521(Lower BB).
Recommendation: Good to sell around 0.5630, with stop loss of 0.5700 and target price of 0.5550
