NZD/USD below 0.68 as investors shun risk, China data misses estimates
- NZD/USD has hit the lowest since Nov. 28.
- The pair lost 60 pips ahead of the China data release, possibly due to risk aversion and the resulting drop in the JPY cross.
- Below-forecast China retail sales and industrial production data released soon before press time is adding to the bearish tone around the NZD.
The NZD/USD pair has dropped more than 60 pips in the last one hour, courtesy of risk aversion and a weaker-than-expected China data.
Kiwi ran into offers near 0.6860 an hour ago as investors began selling risk. The S&P 500 futures fell into the red, driving the NZD/JPY cross lower. As of writing, the S&P 500 futures are down 0.60 percent and the JPY cross is down 1 percent.
The bearish tone around the Kiwi strengthened further a few minutes ago, pushing the NZD/USD below 0.68 for the first time since Nov. 28, as China's retail sales and industrial production numbers missed estimates. Retail sales for November came in at 8.1 percent year-on-year, missing the estimate of 8.8 percent by a big margin. Meanwhile, industrial production also missed estimates by printing at 5.4 percent.
Looking forward, investors may continue to shun risk due to signs of a slowdown in China. As a result, NZD/USD may remain on the defensive.
NZD/USD Technical Levels
Today Last Price: 0.6801
Today Daily change: -63 pips
Today Daily change %: -0.918%
Today Daily Open: 0.6864
Previous Daily SMA20: 0.6854
Previous Daily SMA50: 0.67
Previous Daily SMA100: 0.667
Previous Daily SMA200: 0.685
Previous Daily High: 0.688
Previous Daily Low: 0.6842
Previous Weekly High: 0.697
Previous Weekly Low: 0.6846
Previous Monthly High: 0.6887
Previous Monthly Low: 0.6514
Previous Daily Fibonacci 38.2%: 0.6865
Previous Daily Fibonacci 61.8%: 0.6856
Previous Daily Pivot Point S1: 0.6844
Previous Daily Pivot Point S2: 0.6824
Previous Daily Pivot Point S3: 0.6806
Previous Daily Pivot Point R1: 0.6882
Previous Daily Pivot Point R2: 0.69
Previous Daily Pivot Point R3: 0.692