NZD/USD clocks fresh 5-week lows near 0.7230
|Mixed sentiment on the Asian equities combined with stalled USD selling knocked-off the NZD/USD pair to fresh five-week lows of 0.7224.
NZD/USD back below 5-DMA at 0.7300
The Kiwi slumped nearly 60-pips in the US last session, after the US dollar rallied across the board on the release of better-than expected US retail sales, while further drop in New Zealand’s dairy prices also added to the NZD/USD sell-off.
US: Strong retail sales point to robust start to quarter - ING
Solid US retail sales data lifted Fed’s rate hike expectations in the coming years and brought the monetary policy divergence between the Fed and RBNZ back into play. Meanwhile, the recently released downbeat Chinese economic releases also continue to weigh on the NZD. China is New Zealand’s top trading partner.
China data dump: A big miss on expectations across all indicators
China's CPI m/m rebounds in July, but misses expectations
Next of relevance for the spot remains the US housing data that will be followed by the key FOMC minutes release later on Wednesday.
NZD/USD Levels to consider
NZD/USD failed near 0.7250 (psychological levels), with 0.7200 (Aug 14 low) still guarding 0.7185 (100-DMA) and a break back below 0.7134 (200-DMA) are key near-term downside areas. To the topside, a test of 0.7278 (5-DMA) due on the cards, which could open doors towards 0.7310 (10-DMA).
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