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NZD/USD Price Analysis: Nears 0.6480 resistance on generally upbeat China inflation report
NZD/USD prints four-day uptrend after China’s November month inflation data. Clear upside break of one-week-old descending trend line favor buyers. Convergence of 100-SMA, fortnight-old support line restricts bear’s entry.
During the four-day uptrend on Friday morning, NZD/USD accepts bids to retest the daily high near 0.6410. Recent gains in the NZD/USD pair may be related to China's monthly inflation data as well as the technical breakout.
Nevertheless, China's headline Consumer Price Index (CPI) fell to -0.2% MoM in November, compared to 0.1% expected and 0.1% previously. However, the yearly figures came in firmer, to 1.6% versus 1.0% market forecast and 2.1% prior. On the same line was the Producer Price Index (PPI) which improved to -1.3% YoY during the stated month despite -1.5% forecasts and -1.3% previous readings.
Notable is the NZD/USD pair's prolonged break of a two-week-long declining trend line, which combines with stronger RSI and positive MACD indications to keep buyers targeting the monthly high near 0.6480.
In the event that NZD/USD bulls prevail beyond 0.6480, the round number 0.6500 and June's high near 0.6575 could flash on their radars.
Alternately, the resistance-turned-support line, around 0.6355 at the time of publication, precedes the 50-day simple moving average (SMA) at 0.6330 to limit the near-term NZD/USD downside.
However, a convergence of the 100-SMA and an upward-sloping trend line from November 21, close to 0.6255, appears to be a tough nut for the Kiwi pair bears to crack and is the key to their entry.
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