NZD/USD: Bears eye a break below 0.7300 on poor China dataflow?
|The NZD/USD pair failed to sustain at higher levels and extended its retreat from upbeat NZ retail sales data-led spike to 0.7330 region, following the releases of disappointing economic data from China.
NZD/USD: 0.7250 on sight?
The Kiwi caught a fresh bid tone in early Asia New Zealand and jump nearly 30-pips on the release of solid NZ retail sales report, although failed to hold the renewed upside as worse-than expected Chinese macro news continue to dampen the sentiment around the NZD. China is New Zealand’s biggest trading partner.
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Over the last hours, the bears are seen guarding the 0.7300 barrier, as risk-off trades spurred by North Korea-US geopolitical tensions appear to have taken a back seat. However, risks remains to the downside amid negative Asian equities and lower oil prices, which will weigh down on the higher-yielding currency.
Meanwhile, dovish RBNZ policy outcome combined with the exchange rate jawboning by the RBNZ policymakers also continue to have a negative impact on the NZD/USD pair, overshadowing broad based US dollar weakness, triggered by softening US inflation figures.
Looking ahead, it’s a big for the Kiwi in terms of the economic events, with the key US retail sales and NZ GDT price index due tomorrow to set the tone for the spot for the rest of the week.
NZD/USD Levels to consider
NZD/USD failed near 0.7318 (daily pivot/ 50-DMA) levels, with 0.7300 (round figure) still guarding 0.7281 (classic S3) and a break back below 0.7250 (psychological levels) are key near-term downside areas. To the topside, a test of 0.7346/51 (50 & 10-DMA) due on the cards, which could open doors towards 0.7413 (20-DMA).
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