NZD/USD: Struggling to regain 0.7000, despite upbeat NZ data

The NZD/USD pair is trying hard to take on its overnight recovery above 0.70 handle, but in vain, as the bulls remain unimpressed by upbeat NZ business manufacturing data released earlier today. The Business NZ Manufacturing Index came in at 55.2 for February, from a prior of 52.2 that was revised up from 51.6. 

The upside appears capped also on the back of a renewed uptick witnessed in the US treasury yields, while yesterday’s NZ Q4 GDP miss also continue to weigh on the investors’ minds. New Zealand’s Q4 GDP data arrived at 0.4% q/q and well below the expected +0.7% q/q. The previous was revised down as well to +0.8% from +1.1%. 

Looking ahead, the spot will take cues from the broader markets sentiment and the US datasets lined up for release in the US session.

AUD/NZD: still targetting 1.1050 - Westpac

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7038/50 (20-DMA/ psychological levels), above which it could extend gains to 0.7095/0.7100 (100-DMA/ zero figure) and from there to 0.7156/57 (50 & 200-DMA). To the downside immediate support might be located at 0.6950/48 (10-DMA) and from there to 0.6889 (Jan 4 & 3 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.