- Tracks USD, USTs price-action.
- China trade data offer support.
- Focus shifts to the US CPI, retail sales.
The NZD/USD pair stalled its retreat from four-month tops of 0.7277, as the bulls found some support just ahead of the midpoint of 0.72 handle, following the release of upbeat Chinese trade figures.
NZD/USD eased in tandem with oil prices
The Kiwi is seen erasing losses and looks to retest the multi-month top, in response to better-than-expected Chinese trade balance data, which showed that the surplus unexpectedly widened in Dec, despite a surge in the imports. Solid China’s trade data added to the signs of the Chinese economic recovery, also reflected by a rise in the consumer prices.
However, the upside lacks momentum in the spot, as Treasury yields resume their upside, dulling the NZD’s attractiveness as an alternative higher-yielding asset. Moreover, a retreat in oil prices from multi-year tops also weighed down on the resource-linked Kiwi.
Meanwhile, the US dollar looks to extend its rebound across its main peers, which could keep the recovery attempts limited in the major. Attention now turns towards the key US macro releases, including the CPI and retail sales, due later today for fresh near-term trading opportunities.
The pair finds next resistances at 0.7277 (4-month tops), at 0.7300 (natural resistance), 0.7350 (psychological levels). Meanwhile, the supports are located at 0.7211 (5-DMA), 0.7200 (zero figure) and 0.7175 (10-DMA).
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