NZD/USD tests the 0.7050 level during Asian trading hours
|- The kiwi pair will find impetus from NZ PPI, US Fed comments.
- NZD/USD is riding on the back of upbeat Chinese Retail Sales and Industrial Output data.
- RBA governor Philip Lowe speech could have an impact on the kiwi.
NZD/USD continues to test the 0.7050 level during Asian hours on Tuesday. The kiwi is trading up 0.09% at 0.7041 with a high of 0.7052 and a low of 0.7034 at press time.
The kiwi is trading in the green territory on the back of upbeat Chinese Retail Sales and Industrial Output data. On Monday, Chinese economic data showed that Retail Sales and Industrial Output jumped 4.9% and 3.5% YoY in October. So far, the pair has been dominated by concerns over the Chinese economic slowdown led by the debt crisis in the property sector.
Furthermore, expectations of yet another rate hike for November by the Reserve Bank of New Zealand keeps investors' expectations high. Reports suggest that New Zealand's central bank is widely expected to hike rates by at least 0.25%. In October, the central bank had raised interest rates by 0.5%, aimed to curb the rising inflation.
The US dollar index, which measures its value against a basket of its peers, advances 0.42%, sitting at 95.52 and renewed its yearly high.
The kiwi traders will pay attention to New Zealand's Producer Price Index (PPI) input/output data and US Retail Sales figures. Also, a slew of US Fed speakers that are lined up to speak on Tuesday will provide impetus.
NZD/USD technical levels
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