FxWirePro: NZD/USD struggles at 55-EMA, risk-off weighs on the kiwi

Chart - Courtesy Trading View 

NZD/USD was trading 0.57% lower on the day at 0.5794 at around 10:05 GMT. Outlook still bullish.

China introduced new COVID lockdown measures in some major cities including Guangzhou and Wuhan to stem recent spike in COVID-19 cases.

Risk appetite was dragged down by China's COVID Jitters, weighing on the antipodeans, dragging the pair lower.

Data released on Thursday showed the U.S. economy grew more than expected in the third quarter. US Gross Domestic Product (GDP) rose 2.6% on an annualized basis, beating expectations.

The reading also showed that U.S. inflationary pressures did not have as bad an impact on the economy as initially feared.

Data might favor the easy rate hike talks for December in the next week’s Federal Open Market Committee (FOMC) meeting.

Focus now on the US Core PCE Price Index for September, expected to rise to 5.2% versus 4.9% prior for impetus. 

Major Support Levels: 

S1: 0.5774 (5-DMA)

S2: 0.5736 (21-EMA)

Major Resistance Levels: 

R1: 0.5870 (55-EMA)

R2: 0.6060 (110-EMA)

Summary: Technical indicators favour upside in the pair. Price action is struggling at 55-EMA, decisive break above will fuel further gains.