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2 Jan 2015
NZD/USD drops, faces stiff barrier at 200-DMA
FXStreet (Mumbai) - The New Zealand dollar slipped against the US counterpart in the Asian hours, continuing its downtrend from the previous session as downbeat Chinese PMI numbers dragged the Kiwi lower.
Currently, the NZD/USD trades at 0.7756, down -0.57% on the day, heading towards intraday low of 0.7752 levels hit in early Asian morning. The Kiwi slid against the US dollar after the leading indicator of the Chinese manufacturing activity fell to the lowest level since June of 2013 in December, signalling weaker external demand in December. The manufacturing purchasing managers' index (PMI) fell to 50.1 in December, compared to 50.0 expected by market and 50.3 reading from November. The New Zealand economy is highly dependent on China for its exports.
Moreover, broad based US dollar strength also dragged down the NZD/USD pair.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.78 (Dec 29 High) and above which it could extend gains to 0.7850 (Dec 12 High) levels. To the downside, immediate support might be located at 0.7741 (Dec 29 Low) levels and below that at 0.77 levels.
Currently, the NZD/USD trades at 0.7756, down -0.57% on the day, heading towards intraday low of 0.7752 levels hit in early Asian morning. The Kiwi slid against the US dollar after the leading indicator of the Chinese manufacturing activity fell to the lowest level since June of 2013 in December, signalling weaker external demand in December. The manufacturing purchasing managers' index (PMI) fell to 50.1 in December, compared to 50.0 expected by market and 50.3 reading from November. The New Zealand economy is highly dependent on China for its exports.
Moreover, broad based US dollar strength also dragged down the NZD/USD pair.
NZD/USD Technical Levels
To the upside, the next resistance is located at 0.78 (Dec 29 High) and above which it could extend gains to 0.7850 (Dec 12 High) levels. To the downside, immediate support might be located at 0.7741 (Dec 29 Low) levels and below that at 0.77 levels.