NZD/USD price hits 6-day high amid China PMI slowdown
NZD/USD reaches six-day high at 0.5688 amid bullish momentum.
NZD/USD price extended its gains on Wednesday, climbing 0.7% in the North American session to reach a six-day high of 0.5688.
The pair has now gained 1.9% month-to-date and is on track for its third consecutive daily gain in February. With the price testing key resistance near 0.57, the outlook hinges on whether the bullish momentum can hold.
Although, external factors could challenge this uptrend. Earlier in the day, China’s Caixin Services PMI for January fell to 51.0, down from 52.2 in December, missing the expected 52.3. As New Zealand’s largest trading partner, China’s economic slowdown may weigh on the NZD’s strength, limiting its upside.
NZD/USD price dynamics (December 2024-February 2025). Source: TradingView.
Additionally, broader risk sentiment remains uncertain due to escalating U.S.-China trade tensions. Beijing retaliated against the new 10% U.S. tariff, effective Tuesday, by imposing a 15% tariff on U.S. coal and liquefied natural gas (LNG) imports. Additional 10% tariffs were placed on crude oil, farm equipment, and certain automobiles. China also announced export controls on key minerals, including tungsten, tellurium, ruthenium, and molybdenum, citing national security concerns. While Trump indicated he may speak with China, no further updates have emerged.
NZD/USD technical outlook: RSI stays bullish, but 50-day EMA pose resistance
Technically, the relative strength index (RSI) on both the daily and four-hour charts remains in bullish territory, suggesting that momentum favors continued gains. However, the 0.57 level aligns with the 50-day exponential moving average (EMA), creating a significant hurdle for buyers. Therefore, any breakout above this level could open the door for further gains, while failure to sustain momentum may trigger a pullback.
New Zealand’s weak economic data had little immediate impact on NZD. However, concerns over U.S.-China tariffs and Fed policy kept NZD/USD steady around 0.565.
