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NZD/USD drops further after Chinese PMI

FXStreet (Córdoba) - The NZD/USD retreated further and fell to 0.8241, reaching the lowest price in almost two weeks. Before the report it was trading at 0.8275 moving slightly to the upside after posting on Wednesday a daily loss of 25 pips. Despite falling only 25 pips, the NZD/USD finished with downside pressure after making a reversal from 0.8340.

The preliminary manufacturing PMI HSBC in China fell in February to 48.3 from 49.5, below expectations of a reading of 49.4 suggesting that the industrial activity continues to slowdown.

NZD/USD attempting to hold above 0.8250

The NZD/USD is headed now toward the fourth daily decline in a row. Currently trades around the 0.8250 area, that is where the 20 SMA is standing and also a previous support level. If it breaks lower, the pair could be headed to the next support at 0.8210 and below here to 0.8185/90. To the upside resistance levels might lie at 0.8300 and above here at 0.8340/45 (February 19 high).

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USD/JPY is trading below 102.00 from an early 102.41 session high, with losses accelerating after a downbeat Chinese HSBC PMI, leading to a 1.4% decline in the Nikkei 225.
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Debate over Fed rate hikes evolving - WSJ

According to an article from WSJ's Hilsenrath, titled 'Fed puts rate increase on the radar', the Fed-watcher notes "the possibility of interest-rate increases in the near future."
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