NZD/USD Jumps 1% on Profit-Taking, Upbeat China Data
The NZD/USD pair extends its recovery mode into the European session, with the bulls unstoppable taking the prices beyond 0.69 handle.
NZD/USD: Thursday’s slide reversed
Currently,
the NZD/USD pair jumps 1.10% to fresh two-day highs of 0.6926, having
found fresh bids above 5-DMA at 0.6895. The bird continues to fly higher
as markets resort to profit-taking after two back-to-back sessions of
extensive gains. More so, traders clear out their positions as any
impact of weekend’s outcome from oil producers’ meeting in Doha to
discuss output freeze, will eventually have a major impact on the
resource-linked Kiwi.
While the recovery in the NZD/USD pair was
triggered by upbeat Chinese economic releases, with the GDP figures
meeting expectations, while the industrial production, retail sales and
fixed asset data bettered estimates.
In the day ahead, the major
will track the broader market sentiment ahead of the US industrial
production and consumer sentiment data, while next Monday’s CPI data
from New Zealand also remains a key risk event.
NZD/USD Levels to consider
To
the upside, the next resistance is located at 0.6950/55 (daily R2),
above which it could extend gains to 0.6973/0.7000 (Mar 31 High/ round
number). To the downside immediate support might be located at 0.6850/43
(10-DMA/ 1h 200-SMA) and from there to 0.6800 (round number).
(Market News Provided by FXstreet)
