• 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
