- Kiwi slips on bad China PMI.
- USD gains mild intraday strength on Donald Trump comments during SOTU address
NZD/USD currently trading into the 0.7350 handle, slipping from Asia session highs of 0.7368 following the release of worse-than-expected PMI data from China.
Chinese PMI data(including manufacturing) for the month of January dipped lower to 51.3, falling slightly from 51.6 in the previous month. While contraction isn’t positive, the PMI is still comfortably above the 50-point mark, which acts as the waterline for growth or contraction.
Despite the recent bounceback in the Dollar Index, the Kiwi has been trading near three-month highs, capitalizing on continued erosion of confidence in the US Dollar, with the US Dollar receiving a minor updraft following economic comments from President Trump at his State of the Union Address.
The Kiwi is pricing in a resistance zone at 0.7360, with the nearest intraday support showing up around 0.7325.