China CPI beats estimate, NZD/USD eyes 23.6% Fibo

NZD/USD continues its march higher, now eyeing 23.6% Fibo of the recent fall from 0.7485 seen at 0.7140 after China reported a better-than-expected CPI number.

PPI positive sees first increase in 55 months

Producer Price Index (PPI) turned positive for the first time in 55 months, while consumer price index (CPI) bettered estimate to print at 1.9%. Though the CPI is still below target of 3%, the better-than-expected beat is helping high risk/high yielders – AUD and NZD extend gains, suggesting risk-on in the markets.   

NZD/USD pair was last seen trading around 0.7132 levels. The pair clocked a low of 0.7077 earlier today.

NZD/USD Technical Levels

A break above 0.7140 (23.6% of 0.7485-0.7034) would open doors for 0.7183 (Oct 10 high) – 0.72 hanmdle. On the lower side, breach of 0.71 handle could yield a re-test of 0.7077 (session low), under which yesterday’s low of 0.7034 stands exposed.