NZD/USD fails to resist above 0.7300 ahead of US retail sales, NZ GDT

Dhwani Mehta FXStreet

The NZD/USD pair reverses half the Asian advance and falls back below 0.73 handle, as the US dollar extends the upside against its major peers.

NZD/USD back below 5-DMA at 0.7300

The Kiwi trims losses, although remains well bid amid improved market sentiment as North Korea risks fade. However, the bulls are seen defending the bid tone over the last hour amid a fresh bout of buying interest rate seen around the US dollar across the board, while rallying Treasury yields also dull the demand for the NZD as an alternative higher-yielding currency.

More so, the recent series of downbeat Chinese dataflow continues to outweigh solid NZ retail sales report-led optimism, keeping the upside in the spot limited.

China data dump: A big miss on expectations across all indicators

China's CPI m/m rebounds in July, but misses expectations

Later today, all eyes remain on the key US retail sales and NZ GDT price index for near-term trading opportunities.

NZD/USD Levels to consider

NZD/USD failed near 0.7318 (daily classic R1) levels, with 0.7281 (Aug 14 low) still guarding 0.7250 (multi-week lows) and a break back below 0.7200 (psychological levels) are key near-term downside areas. To the topside, a test of 0.7335/46 (10 & 50-DMA) due on the cards, which could open doors towards 0.7405 (20-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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