NZD/USD: Recovery gains intact above 0.6900, China data supports
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The NZD/USD pair has entered a phase of consolidation over the last hour, after having stalled its overnight recovery from 0.6870 region.
The NZD bulls were rescued by broad based US dollar sell-off, following the US tax reforms plan disappointment, which helped the Kiwi to end its 3-day losing streak.
Moreover, a surge in the Chinese industrial profits last month also provided extra legs to the recovery in the spot. China industrial profits grow 23.8% y/y in March
However, it remains to be seen if the prices can sustain the recovery, as the treasury yields turn positive, while weaker oil prices combined with poor sentiment on the Asian stocks may also limit further upside.
All eyes now remain on the US durables goods, goods trade balance and pending home sales data for fresh incentives on the major.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6963 (5-DMA), above which it could extend gains to 0.6981/91 (20 & 10-DMA) and from there to 0.7030 (classic R2). To the downside immediate support might be located at 0.6905/00 (Apr 12 low/ zero figure), and from there to 0.6887 (Mar 9 low), below 0.6868 (4-month lows) would be tested.
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