NZD/USD little impressed by upbeat China inflation

Dhwani Mehta FXStreet

The NZD/USD pair continues to make minor recoveries from a dip to 20-DMA support at 0.7165, as the bulls remain largely unperturbed by the releases of the Chinese CPI and PPI reports for September. The spot is last seen exchanging hands at 0.7175, down 0-.14% on the day.

NZD/USD: Eyes on NZ election outcome

Despite higher oil prices, the resource linked NZD keeps its corrective mode intact from one-week highs reached last week at 0.7198 levels, as a solid jump seen in the Chinese PPI data, alongside a monthly rise in the CPI figures fail to provide any impetus to the Kiwi.

China's CPI m/m a tad firmer in September, beats estimates

The sentiment around the NZD/USD pair also remains undermined by a broad based US dollar recovery and downbeat NZ Performance of Services Index, while markets remain wary ahead of the NZ election outcome due on cards this week.

NZ First party leader Winston Peters is likely to choose between forming the government with Nationals or Labour/Greens 9there at other options.

Focus now shifts towards New Zealand’s quarterly CPI release due tomorrow for the next direction on the major. Meanwhile, markets look forward to the US Empire State Manufacturing Index and Fed Budget balance for some incentives on the buck.

NZD/USD Levels to consider

The NZD tested the 20-DMA support at 0.7165, below which 0.7115/0.7100 (10-DMA & round number) and 0.7050 (psychological levels) are key near-term downside areas. To the topside, a test of 0.7198 (weekly tops) due on the cards, which could open doors towards 0.7217 (50-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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