The New Zealand dollar continues to hammer its American counterpart in the Asian session, now pushing the NZD/USD pair further into the green zone in a bid to reclaim 0.73 handle.
NZD/USD cheers upbeat China trade data
The spot extends the recovery from three-week lows into a third day today, as the bulls remain in complete control amid ongoing broad based US dollar weakness, in the wake of the latest Trump scandal and dovish Yellen.
Meanwhile, the latest leg higher in the Kiwi can be largely attributed to stronger-than expected Chinese trade figures, with the imports surging 17.2% y/y in USD terms versus an estimated rise of 14.5%. Solid Chinese imports indicates would help boost New Zealand’s external demand, as China is New Zealand’s biggest export destination.
Looking ahead, it remains to be seen if the NZD/USD pair sustain its recovery mode amid weaker NZ fundamentals, while cautiousness sets in ahead of the US CPI report, especially after the Fed Chair Yellen said in her testimony, “We recognize dangers of persistent undershooting 2% inflation objective.”
NZD/USD Levels to consider
NZD/USD taps on 0.7300, with a test of 0.7345 (Jul 3 high) still remains on the cards. Beyond which 0.7376 (Feb 7 high) will be on sight. To the downside lies 0.7200 (key support) still guarding 0.7183 (50-DMA) and a break back below 0.7150 (psychological levels) are key near-term downside areas.