NZD/USD Trims China Data-Led Losses, 5-DMA Back on Sight?
The Kiwi attempts a tepid-bounce from the Chinese data dump-induced
weakness, and now looks to regain 5-DMA located at 0.6784 amid improved
appetite for risk across the markets.
NZD/USD finds support just below 0.6750
Currently, the NZD/USD pair drops -0.35% to 0.6760, moving-off four-day low struck at 0.6746 in the last hour. The NZD/USD
pair extends its bearish run into a second day this Monday, with the
sentiment further worsened by poor string of data from China released
over the weekend. Although a minor recovery attempt can be witnessed in
the bird over the last hour, with the risk conditions slightly improving
on the back of surging Japanese and Australian stocks.
The Kiwi was hammered earlier today as the Asian traders reacted
negatively to the below estimates Chinese retail sales, industrial
output and fixed asset investment data. The poor show of the Chinese
economic indicators reinforced China slowdown fears and dented the
sentiment around the NZD. China is New Zealand’s top trading partner.
Looking ahead, it’s an eventful week for the Kiwi, with a set of crucial
macro data up on the cards, including the NZ PPI, GDT price index and
inflation expectations, while the FOMC minutes will be also closely
watched for fresh momentum.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6784 (5-DMA), above
which it could extend gains to 0.6800/27 (round number/ 1h 200-SMA). To
the downside immediate support might be located at 0.67246 (100-DMA) and
from there to 0.6700/0.6654 (round number/ 200-DMA).
