NZD/USD unimpressed by China inflation, attacks 0.7300

Dhwani Mehta FXStreet

The NZD/USD pair extends its losing streak into a fourth day today, with the bears now eyeing a break below 0.7300 levels, in response to mixed Chinese price pressures data.

NZD/USD: Focus shifts to RBNZ

The Kiwi received a fresh blow from disappointing Chinese CPI releases and went onto print fresh three-week lows just ahead of 0.73 handle, the latest downbeat Chinese macro news continue to undermine the sentiment around New Zealand dollar. New Zealand is highly dependent on China for its revenues.

China's CPI m/m rebounds in July, but misses expectations

China’s July trade data (Yuan terms): Exports & imports miss expectations

China’s Caixin Services PMI eases in July, misses expectations

The higher-yielding currency NZD remains heavily offered in Asia, in the wake of intensifying risk-off moods amid fresh geopolitical tensions spurring up between the US and North Korea, especially after Trump’s comments.

Trump retaliated overnight and was reported saying, “North Korea best not make any more threats to the US. They will be met with fire and fury like the world has never seen."

More so, weaker oil prices also collaborate to the weakness seen around the commodity currency. The major now awaits fresh economic releases from the US for fresh impetus ahead of the RBNZ policy decision due tomorrow in early Asia.

NZD/USD Levels to consider

NZD/USD failed near 0.7339/38 (daily pivot/ 50-DMA) levels, with 0.7300 (round figure) still guarding 0.7287 (classic S2/ Fib S3) and a break back below 0.7250 (psychological levels) are key near-term downside areas. To the topside, a test of 0.7363 (5-DMA) due on the cards, which could open doors towards 0.7418 (10-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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