NZD/USD firmer, eyes 0.7350 post-China PMI?

NZD/USD is on a three-day winning streak, with the bulls gaining extra impetus following the release of stronger China manufacturing PMI data.

NZD/USD: Will its take-out Tuesday’s high at 0.7346?

The Kiwi extends its vertical rise into Asia, after having found fresh bids near 0.7280 levels in the US last session, in the wake of continued weakness in the US dollar against its major peers.

Moreover, better-than expected official Chinese manufacturing PMI report further added to the upbeat tone seen around the spot, now pushing the rate northwards in a bid to test four-month tops of 0.7346. China's June PMI beats expectations, drives AUD higher

Also, the Antipodean derives support from upbeat NZ fundamentals, after the NZ building consents data rebounded sharply in May, arriving at +7.0 % m/m versus -7.6% prior. On Thursday, New Zealand’s business confidence survey published by ANZ jumped to fresh nine-month high at 24.8 versus 14.9 last.

Focus now shifts towards a fresh batch of US economic releases due later in the NA session, including the Core PCE price index and revised consumer sentiment data.

NZD/USD Levels to consider                                                                              

NZD/USD managed to take-out 0.7306 (daily pivot) upside target, with a test of 0.7350 on the cards. Beyond which 0.7376 (Feb high) will be on sight. To the downside, 0.7280 (10-DMA) guards 0.7254 (20-DMA) and a break back below 0.7200 are key near-term downside areas.