- – The New Zealand dollar after a decline towards 0.6940 against the US Dollar found support and recovered.
- – The NZD/USD pair is currently facing a major resistance near the 0.6980-0.7000 pivot area.
- – Earlier during the Asian session, the Caixin China Services PMI for March 2017 was released, which posted a decline from 52.6 to 52.2.
Caixin China Services PMI
Today in China, the Caixin China Services PMI for March 2017 was released by the Markit Economics. The market was positioned for an increase from the last reading of 52.6 to 53.2.
However, the outcome below the forecast, as the Caixin China Services PMI posted a decline from 52.6 to 52.2 in March 2017. It means there was a weak rise in total Chinese output at the end of the first quarter. The report added that “March data pointed to weaker growth in composite new orders, with the rate of expansion edging down to a four-month low. This reflected weaker increases in new work across both monitored sectors“.
Overall, the result not impressive, dented the market sentiment, and pushed the NZD/USD a few pips lower towards 0.6960.
NZD/USD Technical Analysis
The New Zealand dollar was under pressure this week against the US Dollar, and broke the 0.6980 support area. The NZD/USD pair traded as low as 0.6936 from where a recovery was initiated. However, the same broken support at 0.6980 is now acting as a hurdle for more gains.
The pair has moved above the 23.6% Fib retracement level of the last decline from the 0.7022 low to 0.6936 low, which is a positive sign. However, it is facing a major resistance near 0.6980-0.7000. The stated level coincides with the 100 hourly simple moving average at 0.6985.
Moreover, the 50% Fib retracement level of the last decline from the 0.7022 low to 0.6936 low is also around the same level. We must also note the 0.7000 physiological level is also above it. So, it looks like the pair is facing a tough barrier near 0.6980-0.7000. So, as long as the pair is below 0.7000, the downside pressure remains intact for a push back towards 0.6940.Tags: Caixin China Services PMI, New Zealand Dollar, NZD/USD Technical Analysis, US Dollar