24 Jul 2015
NZD/USD tracks Aussie lower on China PMI, drops to 0.6570
FXStreet (Mumbai) - NZD/USD snapped rally and was heavily sold-off in mid-Asia, largely tracking the sharp sell-off in its OZ counterpart following the release of China manufacturing PMI report which came in at 15-month lows.
NZD/USD drops from 0.6622
Currently, the NZD/USD pair trades lower by -0.54% at 0.6571, hovering close to fresh session lows reached at 0.6563 some minutes ago. The Kiwi erased gains and fell sharply lower after China factory gauge surprised markets on the downside, triggering a fresh sell-off among the antipodean currencies. China is the top trading partner of the both the OZ economies.
The Caixin China manufacturing Purchasing Managers' Index (PMI) rose from 49.4 in June to a preliminary 48.2 in July, below estimates of a 49.8 reading. The Aussie fell to fresh multi-year lows on 0.72 handle, dragging the Kiwi lower towards fresh six-year lows.
Moreover, broad based US dollar strength on the back of correction after Thursday’s fall despite better than expected US jobless claims data , also added to the losses in the Kiwi.
The pair may influence by a set of US macro data due for release later today as the NZD remains undermined on China and downbeat NZ trade balance data.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6621 (Today’s High) levels and above which it could extend gains 0.6656 (July 21 High). To the downside immediate support might be located at 0.6558 (July 22 Low) below that at 0.6502 (July 20 Low) levels.
NZD/USD drops from 0.6622
Currently, the NZD/USD pair trades lower by -0.54% at 0.6571, hovering close to fresh session lows reached at 0.6563 some minutes ago. The Kiwi erased gains and fell sharply lower after China factory gauge surprised markets on the downside, triggering a fresh sell-off among the antipodean currencies. China is the top trading partner of the both the OZ economies.
The Caixin China manufacturing Purchasing Managers' Index (PMI) rose from 49.4 in June to a preliminary 48.2 in July, below estimates of a 49.8 reading. The Aussie fell to fresh multi-year lows on 0.72 handle, dragging the Kiwi lower towards fresh six-year lows.
Moreover, broad based US dollar strength on the back of correction after Thursday’s fall despite better than expected US jobless claims data , also added to the losses in the Kiwi.
The pair may influence by a set of US macro data due for release later today as the NZD remains undermined on China and downbeat NZ trade balance data.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6621 (Today’s High) levels and above which it could extend gains 0.6656 (July 21 High). To the downside immediate support might be located at 0.6558 (July 22 Low) below that at 0.6502 (July 20 Low) levels.