NZDUSD exchange rate shows a new 2-week low at 0.6110 mark. As the Chinese as the situation is getting poorer and less optimistic.
NZDUSD Key Considerations
NZDUSD has retreated to a 2-week trough of 0.6113 due to China’s gloomy view.
In anticipation of Jerome Powell’s Fed address, markets have become more averse to risk
The fact that NZDUSD keeps establishing lower peak levels suggests that traders are taking advantage of every drop and selling.
NZDUSD and China Economic Woes
0.6113 is a new 2-week bottom for the NZDUSD duo as of the start of the European period. The Kiwi asset is expected to continue to decline as China’s economic indicators weaken as a result of low exports and weak consumption.
China’s National Bureau of Statistics (NBS) announced stated due to poor consumer demand, business earnings declined 18.2% in April. And 12.6% in May. This is important to remember that New Zealand counts as one of China’s top trade partners, and the bad Chinese economic picture would put stress on the NZD.
Despite Tuesday’s optimistic settlement, futures for the S&P500 are trading cautiously. In anticipation of US Fed chair Jerome Powell’s address regarding the interest rate direction. Markets have become more averse to risk The imminent barrier of 102.60 is proving difficult for the US (DXY) to maintain safety beyond.
NZDUSD Technical Analysis & Perspective
On a two-hour basis, NZDUSD is regularly creating lower peak values. This suggests that traders are taking advantage of each correction to sell. The 200-period (EMA) near 0.6160, that has prevented the Kiwi currency from bidding beyond it. Suggests the long-run trend is negative.
Activity within the (RSI) (14) shows that an area under 40.00 is repeatedly challenged. While below 60.00 is a barrier. This indicates that there is strong upward momentum.
The currency pair will be exposed towards the Jun 05 bottom at 0.6041 level. Should the price declines further than the intraday bottom around 0.6113 level. And, if the last one were to slide, the currency would be vulnerable to psychological assistance around 0.6000 mark.
As a backup, the Kiwi will go towards the May 19 peak at 0.6306 and the May 8 top near 0.6360. If it confidently breaks over the May 17 top at 0.6261 zone.
