NZD/USD: Recovery remains capped near 0.7180

The NZD/USD pair is seen trading largely subdued in a tight range, unable to find a clear direction, with markets having ignored better-than expected Chinese inflation data.

NZD/USD tracks Oil lower

Currently, the NZD/USD pair trades -0.11% at 0.7168, hovering within a striking distance of session lows struck at 0.7163. The Kiwi faced rejection once again near daily pivot located at 0.7180, and drifted lower to hit session troughs, despite a tad firmer Chinese CPI figures, which helped boost market sentiment.

The NZD/USD pair almost shrugged-off China data, as the commodity-currency was weighed down by renewed weakness in oil prices, while a broadly stronger US dollar also continued to exert downward pressure on the major.

Next of relevance for the spot remains the US consumer sentiment data due later today, in the meantime the major will track the broader-market sentiment and USD price-action for further momentum.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7206 (100-DMA), above which it could extend gains to 0.7224 (multi-week high) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7154/45 (5 & 50-DMA) and from there to at 0.7129 (10-DMA), below which 0.7107 (200-DMA) would be tested.