NZD/USD Fresh Bids Emerge Near 100-DMA on China Data

NZD/USD Fresh Bids Emerge Near 100-DMA on China Data

10 May 2016, 06:02
Roberto Jacobs
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NZD/USD Fresh Bids Emerge Near 100-DMA on China Data

The bears took a breather from their downward spiral following the release of a touch better Chinese CPI and PPI figures, now allowing a tepid-bounce from two-month troughs.

NZD/USD holds above 100-DMA support at 0.6727

Currently, the NZD/USD pair trades -0.27% lower at 0.6752, rebounding from fresh two-month lows of 0.6733 struck earlier today. The Kiwi makes fresh recovery attempts after the Chinese CPI figures stabilized somewhat in April, while the factory gate prices slowed its pace of decline, therefore, boosting market sentiment.

Moreover, with a sudden improvement in the risk conditions, the higher yielding currencies such as the NZD received fresh support, taking on the recovery beyond the mid-point of 0.67 handle. Japan’s Nikkei jumps +1.60%, Australia’s ASX 200 trades marginally higher, while the Chinese equities erased initial gains and flipped to gains as markets digest the Chinese datasets.

Looking ahead, we have a light economic calendar today, with the only US JOLTS jobs openings to be published in the NA session. Hence, focus will continue to remain on the sentiment around oil and global equities.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6800/17 (round umber/ 5-DMA), above which it could extend gains to 0.6850/54 (1h 100-SMA). To the downside immediate support might be located at 0.6727 (100-DMA) and from there to 0.6706/00 (daily S2).


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