NZD/USD consolidates near multi-month tops, but gives up 0.7300

The NZD/USD pair is seen correcting last week’s heavy gains and now hovers just below 0.73 handle as the bulls take a breather heading into a series of Chinese macro news lined up later this week.

NZD/USD still holds above all DMAs

Currently, the NZD/USD pair trades -0.23% lower at 0.7291, moving-off session troughs struck at 0.7280 last hour. The Kiwi’s recovery attempt from daily lows fails once again below 0.73 barrier, as markets consolidate last week’s rally to fresh fourteen-month highs clocked at 0.7308.

Further, the NZD/USD pair remains under pressure on the back of tumbling oil prices, as oil markets ignore bullish comments from Saudi’s oil minister. Both crude benchmarks are down nearly 1% so far this session. While the downside finds support from a broadly muted US dollar, as dust settles over unexpectedly upbeat NFP data.

Looking ahead, markets moved past in line with expectations Chinese CPI and PPI data, as focus now turns towards the Chinese trade and GDP numbers due later this week, while a fresh batch of US economic news will be also closely eyed. China is the OZ economy’s top trading partner.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7308 (multi-month high), above which it could extend gains to 0.7329 (week ended May 24 2015 high). To the downside immediate support might be located at 0.7252 (5-DMA) and from there to at 0.7212 (10-DMA).