NZD/USD drops to day’s low ahead of China PMI

• ANZ consumer sentiment data flashed another red signal from New Zealand’s economy.
• Trade jitters between the US and China continue.
• All eyes on China’s PMI.

With New Zealand’s domestic consumer sentiment data flashing red signals, the NZD/USD pair declines to the intra-day low of 0.6506 during the early Asian session on Friday. Investors now await China’s official PMI data for fresh impulse.

The monthly reading of the ANZ Roy Morgan consumer confidence for New Zealand slumped to a six month low of 119.3 versus the previous readout of 123.20.

The Kiwi has been on a south-run off-late as growing trade tensions between the US and China joins downbeat data/events at the home.

The latest release of New Zealand’s annual budget also couldn’t please Kiwi buyers despite Treasury’s economic optimism.

Investors may now wait for May month manufacturing and non-manufacturing purchasing manager index (PMI) numbers from China, the world’s largest commodity trader. While manufacturing PMI is likely to slip into contraction territory of 49.9 versus 50.1 prior, non-manufacturing PMI may improve to 54.5 against 54.3 earlier.

Technical Analysis

The pair needs to offer a sustained break of 0.6480 in order to visit October 2018 low surrounding 0.6425 and then aim for 0.6400 until then chances of the quote’s pullback to 0.6560 and April month low near 0.6585 can’t be denied.