USDNZD Bounces Off 2025 Lows, China Caixin Mftg
The price action in USD to NZD rate has resumed motion, with NZD/USD reversing higher and gaining more than 100 pips after finding support at the 0.8550s zone. This forex pair has been on a downtrend since the second week of June, but the support zone held and yesterday the price gained some upside momentum before and after the FOMC meeting, which left interest rates unchanged at 5.50%, but hinted at a September rate cut.
NZD/USD Chart Daily – Bouncing Off April’s Low
Ahead of the FED meeting, the NZD/USD stabilized last week following a 300-pip drop in July. The pair dipped below 0.60, with sellers pushing it near the 0.5850 level. The daily chart showed a sharp decline, and the pair remains in a downtrend, influenced by China’s deteriorating economic situation and dovish remarks from the Reserve Bank of New Zealand. Despite a tough month for the NZD/USD, a recent upward shift has sparked optimism that the bearish trend might be ending.
The pair reversed course and began to rise after nearing the crucial yearly low of 0.5850, forming a bullish engulfing candlestick pattern. This pattern often indicates a potential positive turnaround, supported by the stochastic oscillator, which is emerging from oversold conditions.
China Caixin manufacturing PMI for July
- Caixin Manufacturing PMI for July 49.8 points vs 51.5 points expected
- Caixin Manufacturing PMI for June was 51.8 points
- First contraction in 9 months
- July Caixin Manufacturing PMI Reading: 49.8 points
- Expected PMI: 51.5 points
- June Caixin Manufacturing PMI Reading: 51.8 points
- Significance: Indicates the first contraction in nine months, suggesting challenges in China’s manufacturing sector
The report concludes that stabilizing growth and enhancing domestic demand should be the primary policy priorities. While this approach is correct, progress is likely to be slow due to China’s substantial debt burden. The recent decline in economic indicators, the first in nine months, points to underlying challenges within the Chinese economy. Although the Caixin survey, which has consistently outperformed the official Purchasing Managers’ Index (PMI), offers some hope, both indices are currently contracting.
NZD/USD Live Chart
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