- NZD/USD extends its gains amid the improved Kiwi Manufacturing Index.
- Business NZ PMI advanced to 46.7 in November from the previous readings of 42.5.
- Technical indicators suggest retesting the five-month high at 0.6249.
NZD/USD continues its winning streak for the fifth successive day on the downbeat US Dollar (USD). The NZD/USD pair trades around 0.6220 during the European hours on Friday. Investors are expected to closely monitor the S&P Global Purchasing Managers Index (PMI) data on Friday.
Even positive economic data from the United States (US), including a 0.3% increase in Retail Sales (MoM) for November and reduced Initial Jobless Claims at 202K, failed to underpin the USD. Moreover, the Kiwi Business NZ PMI for November rose to 46.7 from the previous 42.5, which might have provided upward support for the New Zealand Dollar (NZD).
The 14-day Relative Strength Index (RSI) is above the 50 level, indicating a bullish sentiment, which suggests that the NZD/USD pair could retest the five-month high at 0.6249 lined up with the 0.6250 major level. If the NZD/USD pair manages to surpass the resistance area, it might find support to venture into the psychological region near 0.6300.
Additionally, the positive positioning of the Moving Average Convergence Divergence (MACD) line above both the centerline and the signal line could serve as confirmation of bullish momentum in the market.
On the downside, a break below the psychological support level of 0.6200 could push the pair to fall to the 23.6% Fibonacci retracement at 0.6165 before the major support at 0.6150. A decisive break below the level could lead the NZD/USD pair to navigate the region around the 14-day Exponential Moving Average (EMA) at 0.6149.
NZD/USD: Daily Chart:
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