NZD/USD trims Chinese data-led gains to near three-week highs

The NZD/USD pair trimmed some of the Chinese data-led strong gains to nearly three-week highs and has now retreated back closer to the key 0.70 psychological mark.

Spot gained some fresh traction on Monday and traded with positive bias for the fourth consecutive session in wake of upbeat Chinese macro data, which extended support to commodity-linked currencies, including the New-Zealand Dollar. 

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Meanwhile, a softer tone surrounding the greenback, in wake of Friday's downbeat US macro data and Trump's bearish comments, further collaborated to the pair's up-move to the highest level since late March. 

The pair, however, lacked follow through momentum amid rising geopolitical tensions, which tends to drive flows away from riskier / higher-yielding currencies - like the Kiwi.

Apart from the broader market risk-sentiment, the US Dollar price-dynamics would continue to influence the pair's movement on a holiday-thinned trading session on Monday. Later during the NA session, the release of Empire state manufacturing index, might provide some impetus for short-term traders. 

Technical levels to watch

Immediate support is pegged near 0.6990-85 area, below which the pair is likely to drop back towards 0.6960-55 region ahead of 0.6930 strong horizontal support. 

On the upside, a follow through momentum beyond 0.7030 level has the potential to lift the pair towards 50-day SMA near 0.7060 region, en-route 100-day SMA hurdle near 0.7080-85 region.