NZD/USD retreats on US dollar recovery and mixed Chinese data

• The NZD/USD pair plummeted to a daily low of 0.5930, down 0.50%.
• China reported mixed economic figures during the Asian session.
• The strength of the US dollar contributed to the decline.

The NZD/USD pair registered bearish movements on Tuesday’s session and fell to 0.5930, with a daily loss of 0.50%. In terms of data, China reported Trade Balance, while the US Dollar regained ground, driving the pair lower.

In line with this, after the US DXY Index closed a weekly decline of 1.40% last Friday, the dollar is gaining some traction driven by a cautious mood in the markets and the recovery in yields in the US. In addition, the Markets await new catalysts to continue betting on the next decisions of the Federal Reserve (Fed) and attention is focused on the US Consumer Price Index (CPI) figures. October next week.

Ahead of Powell’s speech on Wednesday, several Fed officials gave statements on Tuesday but did not provide any new insight into the bank’s plans for upcoming monetary policy decisions.

Separately, China, one of New Zealand’s main trading partners, reported that exports fell more than 6% (year-on-year) in October, while imports rose 3% (year-on-year), but the data did not cause no movement in the Kiwi.

NZD/USD levels to watch

NZD/USD presents a neutral to bearish technical picture on the daily chart as bullish momentum is waning. The Relative Strength Index (RSI) is pointing bearish above its midline, while the Moving Average Convergence (MACD) prints decreasing green bars. Furthermore, the pair is above the 20-day SMA, below the 100-day SMA, but above the 200-day SMA, implying that the bears remain in control higher. scale.

Supports: 0.5915, 0.5900, 0.5880 (20-day SMA)
Resistances: 0.5960,0.6000 (100-day SMA), 0.6030.

NZD/USD Daily Chart