#NZDUSD @ 0.58133 extends losses on weaker Kiwi and Chinese economic data.

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• NZD/USD extends losses on weaker Kiwi and Chinese economic data.

The pair currently trades last at 0.58133.

The previous day high was 0.5858 while the previous day low was 0.5803. The daily 38.2% Fib levels comes at 0.5824, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5837, expected to provide resistance.

NZD/USD trims most of its intraday losses but still trades in the negative trajectory, bidding around 0.5820 during the early European session. The pair faces losses in the second consecutive session as market sentiment leans toward the US Dollar (USD) ahead of monetary policy decision by the US Federal Reserve (Fed) on Wednesday.

Additionally, the moderate employment data from New Zealand undermines the Kiwi pair. Employment Change declined by 0.2% in the third quarter against the expected 0.4% readings. Unemployment Rate increased, as expected, to 3.9% from 3.6% prior. This indicates that the Reserve Bank of New Zealand (RBNZ) will likely maintain its policy rate in November, putting downward pressure on the NZD/USD pair.

Moreover, as revealed in the latest Wednesday data, the unanticipated drop in China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) sparks worries about deteriorating conditions in the world’s second-largest economy, which adds pressure on the Kiwi Dollar (NZD). The index showed a print of 49.5 in October compared to the 50.8 expected, lower than September’s expansion at 50.6.

On Tuesday, the US Dollar Index (DXY) got a lift from higher US Treasury yields, holding steady around 106.70 as the 10-year US bond yield stood at 4.90% by the press time. The prevailing market sentiment suggests an anticipation that the US Federal Reserve will keep the current interest rate at 5.5% in the Wednesday meeting.

Investors will closely observe the Fed’s remarks on the future path of interest rates, and any hint of a hawkish stance could potentially bolster the US Dollar (USD).

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.582 at the time of writing. Pair opened at 0.5825 and is trading with a change of -0.09 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.5896, 50 SMA 0.5916, 100 SMA @ 0.6029 and 200 SMA @ 0.6128.

The previous day high was 0.5858 while the previous day low was 0.5803. The daily 38.2% Fib levels comes at 0.5824, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.5837, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.5799, 0.5774, 0.5744
• Pivot resistance is noted at 0.5854, 0.5884, 0.5909

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