Attempts to surpass 0.6300 as China eases Covid-related curbs

• Easing China’s Covid curbs is failing to support the New Zealand Dollar.
• The 200-EMA at 0.6320 is acting as a major barricade for the New Zealand Dollar.
• A 40.00-60.00 range oscillation by the RSI (14) is hinting a consolidation ahead.

The NZD/USD pair is aiming to surpass the immediate resistance of 0.6300 in the early Asian session. The Kiwi asset is showing strength amid positive risk sentiment in the FX domain after a gradual decline in the pace of the United States Personal Consumption Expenditure (PCE) Price Index.

The New Zealand Dollar is capitalizing on the headlines of easing Covid restrictions by the Chinese administration. China will no longer subject inbound travelers to quarantine in early January, putting the country on track to emerge from three years of self-imposed global isolation under a Covid Zero policy, as reported by Bloomberg.

On an hourly scale, the Kiwi asset is oscillating back and forth in a range of 0.6253-0.6322 as investors are awaiting a fresh trigger for a decisive move ahead. Also, a volatility contraction is bolstering expectations for an expansion in tick size and volume ahead. The 50-period Exponential Moving Average (EMA) at 0.6300 is overlapping with the asset, which indicates a consolidation while the 200-EMA at 0.6320 is acting as a major barricade for the asset.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals rangebound movements ahead.

For an upside move, the New Zealand Dollar needs to push the Kiwi asset above 0.6320, which will drive the major towards the round-level resistance at 0.6400, followed by December 9 high at 0.6428.

On the flip side, a breakdown of the previous week’s low at 0.6230 will drag the major towards November 18 high around 0.6200. A slippage below the latter will expose the asset for more downside towards November 28 low around 0.6165.

NZD/USD hourly chart