NZD/USD Price Analysis: Ignores China PMIs to stay firmer above 0.7000
- NZD/USD holds onto the upside break of three-month-old trend line despite downbeat China data.
- China NBS Manufacturing PMI barely missed contraction but not the Non-Manufacturing PMI.
- Bullish MACD, sustained trading above 50-DMA favor buyers cheering the trend line breakout.
NZD/USD pays a little heed to China’s disappointing official activity data while staying firmer around 0.7025, up 0.30% intraday, during early Tuesday.
China’s NBS Manufacturing PMI dropped below 50.2 forecast and 50.4 previous readouts to 50.1 while the Non-Manufacturing activities shrunk, per the PMI data, for August while flashing 47.5 figures versus 52.8 expected and 53.3 prior.
Read: Chinese PMIs miss the mark, AUD steady
In doing so, the kiwi pair defends the early Asian break-out of a downward sloping trend line from late May amid bullish MACD. Also favoring the NZD/USD buyers is the pair’s ability to remain beyond 50-DMA.
Hence, the pair buyers are well-directed towards the 200-DMA level of 0.7115 but the monthly high around 0.7090 and July’s top near 0.7105 may offer intermediate halts during the rise.
Meanwhile, pullback moves need to conquer the 50-DMA level of 0.6985 on a daily closing basis to recall the NZD/USD bears.
Following that, July’s bottom surrounding 0.6880 and the yearly low near 0.6805 will be the key to follow.
NZD/USD: Daily chart
Trend: Further upside expected