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).
