NZD/USD pays no heed to China data

A weaker-than-expected China CPI data has had no impact to on the NZD/USD pair, leaving it in its corrective mode just above 0.74 handle.

Supported by 5-DMA

The pair found support earlier today around 5-DMA level of 0.7395 levels, but the subsequent rebound has not resulted in major gains. China CPI for August came-in weaker-than-expected at 1.3% year-on-year. PPI almost matched estimates.

However, the Kiwi paid little attention to the data. Moreover, the currency is in a corrective mode after having hit a one-year high of 0.7485 levels on the back of yield differential and upbeat Fonterra GDT auction.  

NZD/USD Technical Levels

The spot was last seen trading around 0.7408 levels. Breach of hurdle at 0.7422 (Tuesday’s high) would expose 0.7485 (Wednesday’s high) – 0.75 handle. On the other hand, acceptance below 0.7395 (5-DMA) would shift risk in favor of a drop to 0.7339 (Aug 11 high) – 0.73 (zero figure).