NZD/USD recovers to 0.7100 as USD rally stalls

The NZD/USD pair stalled its downslide and recovered back towards 0.71 handle as the USD bulls took a breather after the massive rally witnessed so far this Asian session.

NZD/USD bounces-off 4-week lows

Currently, the NZD/USD pair drops -0.25% to 0.7097, recovering from session lows struck near key 200-DMA support located at 0.7081. The Kiwi shrugs-off weaker Chinese data and attempts a tepid-recovery in mid-Asia, largely on the back of a broad based retreat in the US dollar from the highest levels since January 2016.

Attention now turns towards the retail sales data due out from both the US and New Zealand due tomorrow for fresh momentum, in absence of economic releases from the US docket in the day ahead.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7119 (daily pivot), above which it could extend gains to 0.7164 (5-DMA) and from there to 0.7200 (round figure). To the downside immediate support might be located at 0.7081/76 (200-DMA/ daily low) and from there to at 0.7050 (psychological levels), below which 0.7032 (Oct low) would be tested.