March 23, 2023

NZD/USD Steady Following China’s Eased COVID Restrictions – Technical Analysis

Tuesday sees the New Zealand Dollar edging higher amid increased risk appetite after China resorted to a massive move of easing restrictions on its borders. The Kiwi witnessed advancements in thin trading during year-end festivities after China’s government declared it would halt the COVID-19 quarantine policy for inbound tourists.

The decision to ease travel limits means an essential step toward opening the economy. New Zealand remains a leading trading companion for China, and analysts often treat it as a representation of China’s Yuan. Thus, potentially impressive Chinese economy updates often mean favorable tales for NZD.

NZD-USD traded at 0.6283 during this publication, dropping 0.05% or 0.0003. Reuters report indicates that China will halt quarantines for inbound travelers starting 8 January. That comes despite increased COVID cases.

Moreover, Beijing reduced the policies for monitoring COVID cases from Category A to the less severe Category B. The move represents steps toward re-opening the Chinese economy, which remains lucrative for the worldwide economy & commodity-connected currencies such as the NZD.

24Hr Chart Technical Analysis

The primary trend remains elevated on the 24hr swing chart. Nonetheless, momentum maintained downward trends. A trade past 0.6514 will confirm an uptrend resumption. Meanwhile, moving through 0.6156 will shift the primary trend to the downside. Meanwhile, the minor trend (controlling momentum) remains down.

The longer-term FIB level at 0.6231 represents the closest support. Losing this footing will welcome the near-term 50% FIB at 0.6177. On the other side, the 0.6373 minor pivots displayed the closest resistance. Another hurdle stands at the longer-term 50% mark at 0.6467.

24hr Chart Technical Forecast

Trader response around the 0.6273 mark will likely determine today’s NZD/USD direction. Sustained movements beyond 0.6273 will highlight buyer presence. Enthusiasts should watch an uptick into the 0.6373 minor pivots if it builds good upside momentum.

Meanwhile, steady moves beneath 0.6273 would highlight seller presence. That might initiate dips into the 0.6231 support cluster before exploring the near-term 50% mark at 0.6177. Continued fall would welcome the 0.6156 primary bottoms. A Trade beneath this mark would shift the trend to the downside.

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