9 Jun 2015
NZD/USD off lows near 0.7130, China data weighs
FXStreet (Mumbai) - The New Zealand snapped its recovery and fell back in red versus its American counterpart in the mid-Asian session, sending NZD/USD closer towards 0.71 barrier. The Kiwi dipped in Asia largely on the back of poor China CPI print which raised concerns over slowing demand in the world’s second largest economy.
NZD/USD recovers from 0.7119
Currently, the NZD/USD pair trades lower by -0.18% at 0.7130, retreating from session lows reached at 0.7119 post China data release. NZD/USD erased previous gains and edged lower today following discouraging Chinese consumer and producer prices pressures data which sparked concerns about deflation and waning external demand from China. China is the top export destination of New Zealand.
The CPI rose 1.2% y/y in May, coming in slightly weaker than the forecast pace of 1.3%, and easing from April's 1.5% rise. While factory-gate price deflation measured a steady 4.6% y/y in May, bigger than the forecast of a 4.5% drop in the producer-price gauge.
On Monday, NZD/USD staged a solid come back from 4-1/2 year lows after the US dollar was broadly sold-off on profit-taking after NFP-led rally while USD concern rumour also added to the weakness in the greenback.
NZD/USD Levels to consider
Chris Capre founder of 2ndSkies Forex notes, “Near term resistance comes in at 7193 where Impulsive selling from here means we have a more complex corrective structure in place while a breakout puts 7215 and 7293 in focus.”
NZD/USD recovers from 0.7119
Currently, the NZD/USD pair trades lower by -0.18% at 0.7130, retreating from session lows reached at 0.7119 post China data release. NZD/USD erased previous gains and edged lower today following discouraging Chinese consumer and producer prices pressures data which sparked concerns about deflation and waning external demand from China. China is the top export destination of New Zealand.
The CPI rose 1.2% y/y in May, coming in slightly weaker than the forecast pace of 1.3%, and easing from April's 1.5% rise. While factory-gate price deflation measured a steady 4.6% y/y in May, bigger than the forecast of a 4.5% drop in the producer-price gauge.
On Monday, NZD/USD staged a solid come back from 4-1/2 year lows after the US dollar was broadly sold-off on profit-taking after NFP-led rally while USD concern rumour also added to the weakness in the greenback.
NZD/USD Levels to consider
Chris Capre founder of 2ndSkies Forex notes, “Near term resistance comes in at 7193 where Impulsive selling from here means we have a more complex corrective structure in place while a breakout puts 7215 and 7293 in focus.”