NZD/USD manages to keep 0.6900 post-mixed China data dump
- Meanders near 2018 lows at 0.6903, as mixed Chinese data fail to offer any respite.
- Monetary policy divergence and subdued oil prices continue to weigh
- All eyes on the US retail sales and NZ GDT price index for fresh direction.
Having tested the multi-month lows of 0.6903 last hour, the NZD/USD pair is seen gyrating near the last, as the bulls remain unimpressed by the mixed releases of China’s industrial and retail sales figures, which painted a mixed picture of the Chinese economic growth. The Kiwi is considered a liquid proxy for China.
Adding to the downside in the spot, the US dollar is seen trying hard to build on the overnight-recovery versus its main competitors, as Treasury yields turn positive. More so, subdued trading activity around oil prices also fails to lift the sentiment around the resource-linked Kiwi, as the monetary policy divergence between the Fed and RBNZ continue to undermine the major.
Focus now shifts towards the US retail sales and NZ GDT price index data for further momentum on the prices, as markets continue to track the USD dynamics.
NZD/USD Technical Levels
Ross Burland, Analyst at FXStreet notes, “Support comes in at 0.6880 and resistance at 0.7080. The NZD/USD had dropped below the key 200-month moving average support at 0.6980 and technicals stay bearish while RSIs are biased to the downside longer-term on the daily and weekly sticks. 0.6780 comes as next downside target meeting the lows of mid-Nov 2017. However, 0.6860 should be a firm support line before then.”