NZD/USD sits at session tops, 0.72 mark still seems elusive
|The NZD/USD pair held with minor gains for the fifth consecutive session on Monday but continued with its struggle to move past the 0.7200 handle.
Currently hovering around the 0.7185 region, testing session tops, the pair got a minor boost from today's Chinese inflation figures, especially stronger PPI print. The initial uptick, however, lacked any strong follow through momentum amid a modest pickup in the US Dollar demand.
Despite Friday's slightly softer US CPI print, market participants remain convinced that the Fed would eventually move towards raising interest rates for the third time in 2017. Hence, the prevalent positive tone around the US Treasury bond yields underpinned the greenback and capped any further up-move for higher-yielding currencies - like the Kiwi.
Today's US economic docket features the release of Empire State Manufacturing Index and would now be looked upon for some fresh trading impetus later during the NA session. In the meantime, the US bond yield dynamics would continue to act as an exclusive driver of the pair's movement at the start of a new trading week.
Technical levels to watch
Bulls would be eyeing for a clear break through the 0.7200 handle, above which the pair is likely to dart towards 50-day SMA hurdle near the 0.7230-35 region.
On the downside, the 0.7160 region (200-day SMA) now seems to act as immediate support, which if broken could drag the pair back towards 0.7125 intermediate support en-route the 0.7100 handle.
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