NZD/USD clings to gains above 100-DMA after upbeat GDT Price Index
|The NZD/USD pair trimmed some of its strong gains to three-week high level but held on to its strength back above 100-day SMA.
Currently hovering around 0.7200 handle, the pair caught fresh bids following the upbeat release of GDT Price Index, showing reference price at the latest dairy auction rose 1.4% as compared to 3% contraction at the previous auction.
During early US trading session, the pair retraced back below 0.7200 following the release of mostly in-line with estimates US CPI print for September, which has been perceived by the markets as supportive of an eventual Fed rate-hike action by the end of this year.
Immediately after the release the pair trimmed some of its strong gains led by upbeat NZ CPI print, released during early Asian session on Tuesday and trimmed expectations of further rate-cut by RBNZ at its meeting in November.
Focus now shifts to important Chinese macro data, during early Asian session on Wednesday, which would determine investor risk-appetite and eventually drive riskier, higher-yielding currencies - like Kiwi.
Technical levels to watch
From current levels, 0.7215-20 area (session high) remains immediate resistance, which if conquered seems to assist the pair beyond 0.7250 intermediate resistance towards its next major hurdle near 0.7275-80 region.
Meanwhile on the downside, 100-day SMA near 0.7180 seems to have emerged as immediate support below which the pair is likely to correct back towards 0.7150-40 horizontal support and eventually towards 0.7100 handle.
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