Nzdusd Finds Support On China Data

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Nzdusd Finds Support On China Data

Nzd/Usd Finds Support Near 0.6080 On China Data

The NZD/USD lost the 0.6100 handle only to find temporary support near the 0.6080 level. The formation of this temporary support level was due to the sharp selling pressure in the last few sessions.

The Kiwi has since recovered and is seen near 0.6090, a few distance away from the 0.6100 handle, which is now acting as resistance. The improvement seen in the NZD/USD is due to the Chinese retail sales and industrial production data, which was higher than expectations.

Retail Sales (China) Up By 5.5%

The data showed that retail sales in China increased by 5.5%, while the forecast was only 5.2%. Although the data was above forecast, it was still lower than the 7.4% reading.

Similarly, the industrial production also showed an upside surprise with a reading of 7%, while the forecast was 5.0%. Additionally, the data was also higher than the earlier 6.8% reading.

It is only natural for the NZD/USD to be sensitive to any data coming from China. After all, New Zealand is one of the top trading partners of China, which makes it vulnerable to Chinese economic data.

Meanwhile, the market sentiment is now entirely driven by the interest rate decisions from key central banks. In the context of the NZD/USD, the Fed is scheduled to decide on a rate cut or a rate hike. Additionally, the central bank will release its economic projections.

According to the forecast, the interest rate in the USA will remain unchanged in the March meeting. In simple words, the interest rate will be near 5.25 - 5.50% for now.

The bigger picture shows that NZD/USD is trading in a tight range that starts from 0.6037 and ends at 0.6218. If this back-and-forth trading continues any longer, it will be a sign that the market players remain indecisive.

If we look at the momentum situation of NZD/USD, the RSI is also hovering between 40-60 which means the sentiment is neutral to bullish.

Amidst all of this, the 0.6050 support remains relevant, while the resistance on the top can be seen at the 0.6100 and 0.6150.

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