Nzdusd Remains Offered

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Nzdusd Remains Offered

Nzd/Usd Remains Offered Below 0.6140 On Mixed Chinese Data

The NZD/USD has started the new week with a bearish gap but still has managed to defend the 0.6100 support level for now. The current trend of the NZD/USD is bearish as it is trading below 0.6140, with eyes set on the 0.6100 support.

The recent selling pressure in the NZD comes after the release of China's macroeconomic data, which was mixed to bearish.

Chinese Retail Sales Up By 3.7%

According to the officials, retail sales in China jumped by 3.7% y/y during May while the earlier reading was 2.3%. Similarly, the forecast for May was also 3.0% which was a surprising move for the market players.

However, the upbeat print was offset by the weak readings from the Fixed Asset Investment and Industrial Production. The bottom line is that the data isn't that great, which is not good news for the currencies like NZD, AUD, & others.

Meanwhile, the DXY is pretty strong right now against its peers as evident from the bullish trend of the DXY. The DXY is driving its strength from the Fed's decision to only go ahead with 1 rate cut this year which has pushed the bond yields higher.

This marks the 3rd day in a row that the NZD/USD is under selling pressure on a resurgence of the USD strength. On the NZD/USD chart, the 20 SMA is located at 0.6142 while the 50 SMA is at 0.6046. So if the NZD/USD goes down, it will likely find support near the 50 SMA.

Similarly, the 100 SMA and the 200 SMA are seen to be near 0.607 and 0.6061, which will also act as solid support levels for the NZD.

look at the D1 chart of the NZD/USD chart shows that the S1 pivot point is at 0.6113 while the S2 is at 0.6084. Similarly, the R1 is present at 0.6174 while the R2 is at 0.6205. So, there's still some potential for upside if the NZD/USD turns higher.

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