NZD/USD consolidates daily gains near 0.6880 ahead of NZ PPI data

Trump says China is looking to avoid having tariffs go up.
New Zealand's GDT price index increased by 0.9%.
Coming up: Q4 Producer Price Index from New Zealand.

The NZD/USD staged a decisive rebound after slumping to a 5-day low of 0.6814 earlier in the day and rose toward the 0.69 handle before going into a consolidation phase in the late NA session. As of writing, the pair was up 0.44% on the day at 0.6884.

The greenback in the second half of the day came under a renewed selling pressure and fueled the pair's upsurge. Although there were no macroeconomic data releases from the U.S. that could have triggered the USD sell-off, the sharp fall seen in the 10-year T-bond yield weighed on the currency The US Dollar Index is now looking to close the day 0.25% lower near 96.50.

On the other hand, the kiwi gathered strength on hopes of the U.S. and China making further progress on trade talks this week in Washington. President Trump in the last hour told reporters that China was "trying to move fast to avoid having the tariffs go up" and reiterated that trade talks were going well. Additionally, today's data from New Zealand showed that the bi-weekly GDT auction yielded a 0.9% increase in the GDT price index and supported the kiwi.

The next data from New Zealand will be the Producer Price Index (PPI) for the fourth quarter, which is expected to edge down to 1.1% on a quarterly basis from 1.4%.

Key technical levels

NZD/USD

Overview:
    Today Last Price: 0.6882
    Today Daily change %: 0.44%
    Today Daily Open: 0.6852
Trends:
    Daily SMA20: 0.6821
    Daily SMA50: 0.6788
    Daily SMA100: 0.6734
    Daily SMA200: 0.6752
Levels:
    Previous Daily High: 0.6894
    Previous Daily Low: 0.6839
    Previous Weekly High: 0.6875
    Previous Weekly Low: 0.6719
    Previous Monthly High: 0.694
    Previous Monthly Low: 0.6516
    Daily Fibonacci 38.2%: 0.686
    Daily Fibonacci 61.8%: 0.6873
    Daily Pivot Point S1: 0.683
    Daily Pivot Point S2: 0.6807
    Daily Pivot Point S3: 0.6775
    Daily Pivot Point R1: 0.6885
    Daily Pivot Point R2: 0.6917
    Daily Pivot Point R3: 0.694

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