NZD/USD testing key support near 0.7335 ahead of US data, NZ GDT

The NZD/USD pair reversed almost yesterday’s rebound and headed back towards the 0.73 handle, in response to tumbling Chinese stocks and mixed China’s data dump, which pointed to nascent signs of a growth slowdown underway - Nomura.

Meanwhile, the resurgent buying interest seen around the US dollar across its main competitors amid higher Treasury yields further led to declines in the spot. However, the major is likely to maintain the recent range, as the investors await a fresh batch of the US macro releases and NZ GDT price index for fresh trading impetus.

“That said, the range breakout will likely be decided by the New Zealand’s Consumer Price Index (CPI) for the March quarter, due this Thursday,” FXStreet’s Analyst Omkar Godbole noted.

NZD/USD levels to watch

Omkar adds, “a break above 0.7376 (April 10 high) would expose resistance at 0.7395 (April 13 high) and 0.7436 (Jan. 24 high). On the downside, a close below 0.7332 (10-day MA) would indicate the rally from the low of 0.7153 has ended and could yield a deeper pullback to 0.7185 (200-day MA) and 0.7241 (April 6 low).”