NZD/USD hovers near lows below 0.7635

FXStreet (Mumbai) - NZD/USD pared overnight gains and extends its descent in the mid-Asian session, as worse than expected Chinese manufacturing PMI reading coupled with NZ Fin Min English’s comments dragged the Kiwi lower.

NZD/USD supported above 0.7600

Currently, the NZD/USD pair trades lower by -0.26% at 0.7632, hovering close to fresh session lows posted at 0.7629 some minutes ago. NZD/USD bounced-off highs at 0.7668 levels and inched closer towards 0.76 handle after Chinese manufacturing activity came in at an 11-month low in March, painting a grim outlook for first-quarter growth. China is New Zealand's top trading partner.

HSBC's flash manufacturing Purchasing Managers' Index (PMI) tumbled to 49.2 in March from a final reading of 50.7 in February, against expected slide to 50.4 in March.

Moreover, NZ Finance Minister Bill English comments that a stronger New Zealand dollar remains a headwind for exporters, also weighed on the pair. A rebound in the US dollar across the board further pressured the Kiwi.

Meanwhile, the US dollar is likely to remain the major driver for the pair ahead of the crucial US CPI, manufacturing and new home data later in the day.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7668 (Today’s High) levels and above which it could extend gains to 0.7700 levels. To the downside immediate support might be located at 0.7600 levels below that at 0.7540 levels

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