NZD/USD remains capped below 0.7000 on solid China PMI

The Kiwi consolidates the renewed downtick below 0.70 handle, following the release of way stronger Chinese manufacturing sector activity report.

NZD/USD fails to resist above 0.70 handle

The NZD/USD pair continues to meander near more-than one-week troughs, in response to the recent upsurge in the greenback versus its major rivals amid impressive US economic news and expectations of tighter pace of monetary tightening by the Fed.

Markets also shrugged-off NZ fundamentals released earlier on the day, with NZ employee confidence, building consents and ANZ March activity report bettering expectations, while the ANZ business confidence data came in below estimates.

Moreover, the spot also failed to benefit from upbeat Chinese services and manufacturing PMI reports, which revealed that the manufacturing gauge hit a five-year high, as NZD/USD is largely driven by the USD dynamics, especially after auspicious US pending home sales and GDP data releases.

Next of note for the major remains a fresh batch of US economic releases and a slew of Fedspeaks due later in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7015/26 (5 & 10-DMA), above which it could extend gains to 0.7031/21 (classic R1/ Fib R1) and from there to at 0.7090/0.7100 (100-DMA/ zero figure). To the downside immediate support might be located at 0.6973/63 (Jan 16 & 17 low) and from there to 0.6907/00 (Mar 15 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.