The NZDUSD, trading at 0.59164, slightly declines on Tuesday due to the underwhelming announcement of Chinese PMI.

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• NZD/USD edges lower on Tuesday following the disappointing release of Chinese PMI.

The pair currently trades last at 0.59164.

The previous day high was 0.5961 while the previous day low was 0.5931. The daily 38.2% Fib levels comes at 0.5943, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.595, expected to provide resistance.

The NZD/USD pair attracts fresh sellers during the Asian session on Tuesday and drops to a one-week low, around the 0.5920-0.5915 region in reaction to the disappointing Chinese data.

In fact, a private survey showed that business activity in China’s services sector expanded for an eighth straight month in August, albeit at the slowest pace in eight months. The Caixin/S&P Global Services PMI dropped from 54.1 in July to 51.8 last month, marking the lowest reading since December 2022. The report revives concerns about the worsening economic conditions in the world’s second-largest economy, which, in turn, is seen as weighing on antipodean currencies, including the New Zealand Dollar (NZD).

Apart from this, the emergence of some US Dollar (USD) buying turns out to be another factor exerting some downward pressure on the NZD/USD pair. That said, growing acceptance that the Federal Reserve (Fed) is nearing the end of its rate-hiking cycle might hold back the USD bulls from placing aggressive bets and help limit the downside for the major. Investors now seem convinced that the Fed will leave its interest rates unchanged at the September policy meeting and the bets were reaffirmed by Friday’s mixed jobs data.

This, along with the latest optimism over more stimulus measures from China, which remains supportive of a generally positive tone around the equity markets, could act as a tailwind for the risk-sensitive Kiwi. The NZD/USD could further draw support from the fact that S&P Global Ratings downplayed the possibility of a credit rating downgrade remains for New Zealand, despite some challenges with the fiscal deficit and the current account deficit. This, in turn, warrants some caution for aggressive bearish traders.

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.5924 at the time of writing. Pair opened at 0.594 and is trading with a change of -0.27 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.596, 50 SMA 0.6098, 100 SMA @ 0.6135 and 200 SMA @ 0.6219.

The previous day high was 0.5961 while the previous day low was 0.5931. The daily 38.2% Fib levels comes at 0.5943, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.595, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5927, 0.5914, 0.5897
• Pivot resistance is noted at 0.5957, 0.5974, 0.5987

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