On Thursday's Asian trading, NZD/USD is consolidating near the low of May 27 – 0.6470. On the eve of the "bulls" made an attempt to move to strengthening, but could not stay at the highs.
The fundamental reason for yesterday's growth was the news from China and Australia, where the slowdown in economic growth turned out to be milder than experts predicted. In China, the index of business activity in the manufacturing sector in May increased from 46.0 to 48.1 pp with a forecast of 47.0. It is expected that with the reduction of quarantine restrictions in June, the indicator will grow at a faster pace.
Pressure on the NZD/USD was exerted by the US manufacturing sector business activity index published later, which also strengthened in May. In addition, closer to the close of the session, the Fed's economic review was released in which the regulator noted a moderate economic recovery in all 12 districts, although in some of them there is a slowdown in economic growth due to high inflation.
The Prime Minister of New Zealand intends to consult with the President of the United States on the validity of the agreements recently put forward by Beijing on trade, security and political relations, through which China is trying to dominate the region.
Technical analysis
According to the daily, the MFI indicator and the Bollinger Bands are still pointing upwards, but they are beginning to adjust downwards.
The MACD indicator pushed down from the zero level and formed a weak sell signal.
The stochastic oscillator is steadily declining in the middle of the working area.
In case of a confident breakout of 0.6450 support, we open short positions with a take profit of 0.6350. We will set the stop loss to 0.6500.
In case of a rebound from 0.6450, we are waiting for a breakdown and consolidation above the important level of 0.6500. In this case, we form long positions with a target mark of 0.6600. We will put the stop loss of the purchase at 0.6450.