- The New Zealand Dollar after a solid downside move found support near 0.6850 against the US Dollar.
- The NZDUSD pair is currently moving higher, and facing a major resistance area near 0.6870-80 on the hourly chart.
- The Chinese official non-manufacturing PMI for April 2017 released by China Federation of Logistics and Purchasing (CFLP) posted a decline from 55.1 to 54.0.
NZDUSD Technical Analysis
The New Zealand Dollar mostly fell this past week against the US Dollar, and traded below the 0.6900 support. There was a low formed at 0.6847 in NZDUSD before the pair started a recovery.
The pair moved above the 23.6% Fib retracement level of the last decline from the 0.6919 high to 0.6847 low.
At the moment, the pair is attempting a break above a major resistance area near 0.6870-80 on the hourly chart.
NZDUSD Hourly Chart
There are two bearish trend lines positioned at 0.6870 and 0.6880, waiting to stop the upside move. Moreover, the 50% Fib retracement level of the last decline from the 0.6919 high to 0.6847 low is at 0.6883.
So, it looks like it won’t be easy for New Zealand Dollar buyers to pierce the 0.6880 resistance area.
On the downside, the 0.6850 support remains a major buy zone for NZDUSD in the near term.
The hourly RSI of NZDUSD is just around the 48 level, and attempting a break above 50.
Chinese official non-manufacturing PMI
Today in China, the official non-manufacturing PMI for April 2017 was released by China Federation of Logistics and Purchasing (CFLP). The market was expecting a minor decline from the last reading of 55.1 in April 2017.
The actual result was in line with the forecast, as the official non-manufacturing PMI decreased from 55.1 to 54, but remained well in the expansion zone.
Similarly, the Chinese NBS Manufacturing PMI was also released for April 2017. It also posted a decline from 51.8 to 51.2, where the market was expecting 51.6.
Overall, the market sentiment remained stable during the Asian session, and now NZDUSD is making an attempt to move higher above 0.6880.
Later, today, the US ISM Manufacturing Index for April 2017 is lined up, which may decline from the last reading of 57.2 to 56.5. If the decline is more than expected, the NZDUSD may break past 0.6880-0.6900.