NZD/USD supported above daily pivot, despite dismal China trade

Dhwani Mehta FXStreet

The NZD/USD pair remains volatile, but within range so far this Friday, having dipped to test the daily pivot near 0.7120 region, before meeting fresh buyers to head back towards 0.7150 levels. The spot is last seen exchanging hands at 0.7137, up 0.14% on the day.

NZD/USD unperturbed by NZ political uncertainty

The Kiwi sticks to gains amid broad based US dollar weakness across the board, as dovish FOMC minutes and Fedspeaks continue to weigh negatively on the buck. Also, renewed strength seen around oil prices offer support to the resource-linked NZD.

However, the upside appears limited on the back of downbeat Chinese trade surplus and exports data, which re-ignite concerns over China slowdown fears. Meanwhile, unimpressive NZ business manufacturing numbers also keep the recovery-mode in check.

China’s Sept trade data (Yuan terms): A big miss on expectations

China’s Sept trade data (USD): Trade surplus shrinks, misses estimates

The major now eagerly await the US CPI and retail sales releases for fresh trading opportunities, while Fedspeaks will also remain in focus later today.

NZD/USD Levels to consider

The NZD tested the daily pivot at 1.7121, below which 0.7109/0.7097 (10 & 5-DMA) and 0.7050 (psychological levels) are key near-term downside areas. To the topside, a test of 0.7153 (200-DMA) due on the cards, which could open doors towards 0.7178 (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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