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NZD/USD: awaits impetus from Chinese markets

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - NZD/USD has showed early signs of bearish intentions for the session ahead in Asia. A break out will depend on the look and feel of China today. There was a little bit of stability returning yesterday, but whether that can continue is yet to be seen.

    The trade balance was a positive and a surprise considering the conditions of China manufacturing sector, but anything positive is a plus for the antipodeans that are in desperate need of a lift while markets remain cautious in a bearish commodities sector. Oil, again, dropped overnight and exposes the downside in the bird also, while stocks ended lower in a chop of a session.

    NZD/USD levels

    Technically, the bird recovered as far as the 100 sma on the hourly yesterday on the positive data from China and a neutral Yuan fix. However, there was not the follow through required for a test of the 200 sma on the same time frames up at 0.6633 today and the downside resumed towards the psychological 0.6500 level. This exposes November lows of 0.6428 and then August lows of 0.6220. RSI (14) on the hourly offers some further to go yet at 33 while a recovery above the pivot of 0.6541 would otherwise alleviate pressures in the short-term as price consolidates.
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