NZDUSD Probing Key Floor Ahead of MidMonth Chinese Data Dump

Matt Weller
By :  ,  Head of Market Research

Markets are trading with a slight risk-off tone as we go to press, with the US dollar clocking in as the strongest major currency while aussie and kiwi bring up the rear.

Today’s drop in NZD/USD leaves the pair at a particularly interesting level: rates are testing critical previous support and their 3-month lows around 0.6720. A break and daily close below this level (ideally accompanied by a corresponding breakdown in the RSI indicator) could open the door for another leg lower, with bears potentially targeting the 61.8% Fibonacci retracement of the Q4 rally near 0.6630 next:

Source: TradingView, FOREX.com

From a fundamental perspective, there’s little in the way of direct US or New Zealand data on tap, but China’s mid-month data dump will have a major impact on the kiwi. Readers should keep a close eye on China’s trade balance figure ahead of the weekend, as well as the GDP report over the weekend and Industrial Production figures in Wednesday’s Asian session.


Related tags: Forex China NZDUSD Forex

Open an account in minutes

Experience award-winning platforms with fast and secure execution.

Live Virtual Trading Events

Our interactive live virtual events, led by our industry experts, come highly recommended and can help provide your trading with the edge it needs.
Economic Calendar