NZD/USD holding near 0.7350, downside looming at top of channel

  • The Kiwi is on the low side, but holding steady after last week's Middle East tensions.
  • The Syrian missile action over the weekend produced little velocity in markets as traders take it in stride.

The NZD/USD is holding near Friday's lows, trading around 0.7355 heading into the Europe session.

Syrian missile strikes happen on the weekend, markets barely blink

The Kiwi sees little data for the new week, but China does a data dump starting from 02:00 GMT early Tuesday, with the headline Chinese Gross Domestic Product year-on-year figures expected at 6.8 percent, in-line with the previous figure.

The NZD could see some action from the Global DAily Auction results over Tuesday's session, and then late Wednesday will be seeing New Zealand's CPI figures at 22:45 GMT.

NZD/USD Levels to watch

The Kiwi has been trapped in a major channel for 2018, and the NZD is unlikely to find some fresh direction until interest rate differentials begin to widen further, and as FXStreet's Ross Burland noted earlier, "on the daily sticks, bear engulfing candle formed at the close of business last week with the RSI diverging from the new short-term high and price well below the 0.7440 mark, (16th Feb highs). To the downside, the key target is the 0.7180 level."

 

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