New Zealand dollar traded higher against its US counterpart on Monday, but it was put under pressure following the release of mixed Chinese PMI data and the ongoing expectation, that the Federal Reserve will start to unwind its monthly bond purchases by the end of this year.
NZD/USD pair reached a session high at 0.7785 at 6:24 GMT, after which consolidation followed at 0.7774. The cross added 0.41% for the day. Support was expected at June 28th low, 0.7724, while resistance was likely to be encountered at June 27th high, 0.7853.
Official report announced that Chinese PMI stood at 50.1 in June, following the reading of 50.8 a month ago. On the other hand, Chinese HSBC manufacturing PMI dropped to a 9-month low at 48.2 in June, continuing the slide, as in May the index showed 48.3. Both results were below the 50.0 level, which divides contraction from expansion.
Meanwhile, US dollar was receiving ongoing support as a result of expectations that the Federal Reserve Bank will soon begin to scale back its Quantitative Easing. Market players were also looking forward to Friday’s non-farm payrolls report. Additionally, later on Monday the ISM was to release information on US manufacturing activity.
Elsewhere, kiwi dollar, as New Zealands currency is also known, was lower versus the Australian dollar, as AUD/NZD advanced 0.21% to 1.1832.
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