NZD/USD Price Analysis: Bulls ignore mixed China economics to aim for 0.6150 hurdle
- NZD/USD picks up bids to refresh intraday high despite unimpressive China data.
- China GDP eased in Q2, Retail Sales rose in June but Industrial Production growth declined.
- 200-HMA, weekly resistance line challenge buyers, multiple levels to challenge bears around 0.6100.
NZD/USD extends corrective pullback from two-year low as it renews intraday high near 0.6145 during Friday’s mid-Asian session.
In doing so, the Kiwi pair ignores mixed outcomes of China’s key economic numbers. That said, China’s Q2 Gross Domestic Product (GDP) shrank more than -1.5% expected to -2.6% QoQ, versus 1.4% prior (revised). Further, the Industrial Production also eased but Retail Sales improved in June.
Also read: China’s GDP contracts 2.6% YoY in Q2 2022 vs. -1.5% expected, AUD/USD unfazed
Technically, NZD/USD pair’s successful trading above the weekly horizontal resistance-turned-support area joins bullish MACD signals to keep buyers hopeful.
However, a convergence of the 200-HMA and a one-week-old descending trend line near 0.6150 appears the key challenge.
Should the quote rises past 0.6150, it can aim for last Friday’s peak of 0.6222. It’s worth noting that the 61.8% Fibonacci retracement of June 30 to July 14 downside, near 0.6180, may offer an intermediate halt during the anticipated rally.
Alternatively, pullback moves could aim for the previous resistance area surrounding 0.6100 before directing NZD/USD bears towards the multi-month low near 6060.
In a case where the quote remains bearish past 0.6060, its south-run to the 0.6000 psychological magnet can’t be ruled out.
NZD/USD: Hourly chart
Trend: Limited upside expected