#NZDUSD @ 0.63054 has slipped firmly to near 0.6300 as the US Dollar Index has climbed above 103.60. (Pivot Orderbook analysis)

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• NZD/USD has slipped firmly to near 0.6300 as the US Dollar Index has climbed above 103.60.
• A release of the upbeat Caixin Manufacturing PMI at 49.0 has failed to support the New Zealand Dollar.
• Investors have turned cautious after the New Year celebrations and a long weekend.

The pair currently trades last at 0.63054.

The previous day high was 0.6356 while the previous day low was 0.6309. The daily 38.2% Fib levels comes at 0.6327, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6338, expected to provide resistance.

The NZD/USD pair has witnessed a sell-off in the Asian session despite upbeat China’s Caixin Manufacturing PMI data. The Kiwi asset has dropped to near the round-level support of 0.6300 despite figures remaining better than expectations but lower than the former release. The release of the economic data at 49.0 vs. the projections of 48.8 might support the New Zealand Dollar ahead, being one of the leading trading partners of China.

Going forward, the status of China’s promotion of foreign trade and the capital attraction will remain in focus. China’s State Administration of Foreign Exchange (SAFE) Director Pan Gongsheng said on Tuesday, “China will use exchange rate policy tools to promote foreign trade, expand foreign capital stock and to manage its FX reserve assets in 2023,”

Meanwhile, the risk-perceived assets are facing the heat of long weekend-inspired volatility. The risk appetite of the market participants has trimmed dramatically as investors are cautionary in making positions before settling in the market. S&P500 futures have witnessed decent selling pressure from the market participants as investors are concerned above economic prospects in CY2023.

The US Dollar Index (DXY) has climbed to near 103.50 after a recovery move from the crucial support of 103.20. After the release of the Caixin Manufacturing PMI, investors will shift their focus toward the United States ISM Manufacturing PMI data, which will release on Wednesday.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6304 at the time of writing. Pair opened at 0.6326 and is trading with a change of -0.35 % .

The pair is trading below its 20 Daily moving average @ 0.6347, above its 50 Daily moving average @ 0.6173 , above its 100 Daily moving average @ 0.604 and above its 200 Daily moving average @ 0.6238

The previous day high was 0.6356 while the previous day low was 0.6309. The daily 38.2% Fib levels comes at 0.6327, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6338, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6305, 0.6283, 0.6258
• Pivot resistance is noted at 0.6352, 0.6377, 0.6399

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