FxWirePro: NZD/USD under pressure as Chinese data misfires

• NZD/USD eased  on Monday as kiwi dollar was  pressured following the downbeat Chinese economic data.

• Data showed, China’s growth lost momentum in April as industrial output slowed and retail sales fell to over three-year lows amid rising Iran war-driven energy costs and weak domestic demand.

•  China's industrial output grew 4.1% in April ​from a year ‌earlier, slowing from the 5.7% pace in March, official data ​showed on ​Monday.

•The data released by the ⁠National Bureau of ​Statistics (NBS) missed expectations for ​a 5.9% increase in a Reuters poll.

• China’s retail sales rose just 0.2% in April, slowing sharply from 1.7% in March and marking the weakest growth since December 2022, well below forecasts for a 2% increase.

• The Reserve Bank of New Zealand has taken a cautious approach to tightening policy as the economy has only recently emerged from recession and continues to face spare capacity.

•Markets are currently pricing in around a 40% probability of a Federal Reserve rate hike later this month, while a July increase is fully priced in as rising energy prices continue to intensify inflation concerns.

•  Immediate resistance is located at 0.58575(38.2%fib), any close above will push the pair towards 0.5903(SMA 20).

•  Support is seen at 0.5804(Lower BB) and break below could take the pair towards 0.5755(50%fib).

 Recommendation: Good to sell  around 0.5850 with stop loss of 0.5880 and target price of 0.5800