NZD/USD remains pressured around 0.6800 with eyes on China inflation, Ukraine
- NZD/USD defends 0.6800 the figure after a two-day downtrend.
- New Zealand Q4 Manufacturing Sales rallied 8.2% versus -6.4% prior.
- Market sentiment dwindles even as Ukraine steps back from NATO membership intentions.
- Beijing’s trade link with NZ highlights China CPI, geopolitical headlines are the key.
NZD/USD treads water around 0.6800 round figure during early Wednesday morning in Asia. The Kiwi pair recently failed to cheer upbeat New Zealand (NZ) data as previously upbeat sentiment fades.
New Zealand’s Manufacturing Sales for the fourth quarter (Q4) of 2021 not only reversed the previous 6.4% contraction but rallied to 8.2%.
However, indecision over the Ukraine-Russia crisis, as well as waiting for inflation data from the key customer China, seems to have challenged the NZD/USD buyers of late.
Headlines from AFP, saying that Ukraine is reportedly no longer insisting on NATO membership seem to favor the earlier risk-on mood in the US session. On the same line was the confirmation of the first humanitarian corridor in Ukraine.
Though, sanctions on Russia's energy supplies from the US and the UK challenged the market’s optimism. The move was well-responded by Russian President Vladimir Putin as he bans the export of products and raw materials out of the Russian Federation until December 31.
Technical analysis
Sustained trading below the 100-DMA, around 0.6835 by the press time, directs NZD/USD traders towards an ascending support line from late January, close to 0.6715 at the latest.