Despite solid Chinese industrial profits data release, the rebound in NZD/USD remains capped just below 0.73 handle, as poor NZ trade figures combined with latest headlines from White House weigh.
NZD/USD: Risk-on falters?
The spot is seen struggling hard to regain the bids over the last hours, but in vain, as resurgent USD demand across the board amid higher treasury yields limit the recovery.
The USD index continues to keep its range around 97.15 levels, while shorter duration T-yields lead across the curve, in the wake of the latest BIS, which suggested that the Fed should remain on track with tightening the monetary policy this year.
More so, latest statement published by the White House on potential preparations for chemical weapons attack in Syria, also keeps a lid on the prices. However, the recovery mode remains intact amid upbeat Chinese industrial profits data and better appetite for risk assets. China’s industrial profits increase 16.7% in May
Earlier on the day, the Kiwi fell sharply to 0.7276 levels, after the NZ trade data showed a massive shrink in the country’s trade surplus on the back much higher than expected rise in the imports.
All eyes now remain on a fresh batch of the US macro releases and Fedspeaks, including Fed Chair Yellen’s speech, due on the cards later today.
NZD/USD Levels to consider
NZD/USD managed to take-out 5-DMA at 0.7282 upside target, with a test of 0.7300 on the cards. Beyond which 0.7323 (Jun 14 high) will be on sight. To the downside, 0.7200 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas.
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