NZD/USD fades a bounce to 0.7340, better China GDP ignored

The NZD/USD pair paused its retreat from near multi-month tops of 0.7370 levels, following the release of stronger-than expected Chinese data dump.

NZD/USD: Will it sustain the bounce?

Having failed several attempts to take-out 0.7370 levels over the last week, the spot paused its 3-day winning streak and fell into the red zone on Monday. The retreat in the Kiwi can be largely attributed to a profit-taking slide, as investors resort to repositioning ahead of the key NZ CPI data due tomorrow.

The bulls, however, were offered temporary relief on upbeat Chinese macro news across all indicators, especially with a stronger-than expected Q2 GDP report. China is New Zealand’s biggest export destination.

Looking ahead, the recovery in the NZD/USD pair may not sustain amid broad based pick-up in buying interest seen in the US dollar, after Friday’s massive slump induced by  downbeat US dataflow.

Also, RBNZ deputy governor Bascand’s comments continue to weigh on the pair, keeping any upside attempts short-lived.

NZD/USD Levels to consider                                                                              

NZD/USD tests support near 0.7320, with a test of 0.7345 (Jul 3 high) still remains on the cards. Beyond which 0.7376 (Feb 7 high) will be on sight. To the downside lies 0.7209 (50-DMA) still guarding 0.7183 (Jun 15 low) and a break back below 0.7150 (psychological levels) are key near-term downside areas.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.