NZD/USD chart on Trading View used for analysis
- NZD/USD is trading in a narrow range at 0.6845, largely unchanged at 0430 GMT. Antipodeans dented by poor China manufacturing PMI data.
- Upside in the pair has been capped at 0.69 handle and after 3 consecutive days of failure to extend gains, the pair has slipped lower on Wednesday.
- Currently, price action is holding 21-EMA support at 0.6833, break below will open further downside. Scope for weakness till 200-DMA.
- Data released earlier today showed China's manufacturing activity gauge hit a 3-year low in Feb as export orders fell at the fastest pace since February 2009.
- The official Purchasing Managers' Index (PMI) fell for the third straight month, dropping to 49.2 in February.
- Focus now on US Q4 GDP data for further impetus. US economic growth expected to cool in fourth quarter.
- U.S. economic growth is predicted to fall to 2.3% in the fourth quarter from 3.4% in the third.
Support levels - 0.6833 (21-EMA), 0.6804 (55-EMA), 0.6750 (200-DMA)
Resistance levels - 0.6861 (5-DMA), 0.69, 0.6930 (trendline)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
