China data trigger global growth fears, sends NZD/USD down to 50-hour MA support

• Dismal China import and export growth numbers released earlier today reinforced doubts about global growth.
• The NZD/USD has dropped to its 50-hour MA and could slide even further as worries about cooling global economy are likely to reverberate through the global financial markets.

The NZD is being offered in response to the below-forecast China import and export growth figures.

The Kiwi dollar is currently trading at the 50-hour moving average (MA) support of 0.6805, having found offers near 0.6802 an hour ago.

Chinese imports dropped 3.1 percent year-on-year in CNY terms in December, following a 7.8 percent rise in November. Notably, markets were expecting an import growth of 12 percent. Further, exports rose just 0.2 percent in annualized terms, missing the forecast of 6.6 percent growth by a big margin.

The drop in imports indicates a slowing domestic demand. So, it seems safe to say that consumption is unlikely to compensate for the decline in international trade due to the ongoing trade war with the US. Put simply, the world's second-largest economy could be in for a deeper economic slowdown in the near future.

Also, the slowdown in exports indicates anemic global demand. No wonder, the commodity dollars like the NZD and AUD are feeling the pull of gravity.

Looking forward, the path of least resistance is to the downside, as the fears of global growth slowdown are likely to reverberate through the European and the North American FX desks.

NZD/USD Technical Levels