NZD/USD: Bears unperturbed by upbeat China data dump

The NZD/USD pair remains under pressure in Asia, despite the release of better-than expected Chinese data flow.

NZD/USD fails near 0.7350 – key confluence

Currently, the NZD/USD pair trades -0.18% lower at 0.7340, testing session lows struck earlier at 0.7336. The bulls fail to find respite from upbeat Chinese economic releases, all of which bettered expectations, although failed to have calmed fears over China’s economic slowdown. China is New Zealand’s biggest trading partner.

China industrial production for Aug stood at 6.3% y/y versus 6.1% expected and 6.0% last, retail sales came in at 10.6% y/y versus 10.3% expected and 10.2% last, while fixed asset investment also came upbeat at 8.1% y/y in Aug versus 8.0% expected and 8.1% previous.

The NZD/USD pair keeps the offered tone intact as persisting risk-off trade amid weaker oil and stock markets, continue to weigh on the higher-yielding currency NZD. Nothing of note for the major, in terms of economic data, in the day ahead and hence, focus shifts towards NZ current account and GDP data due later in the week ahead. In the meantime, all eyes will remain on the global yields and RO-RO sentiment for fresh impetus.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7350/52 (5 & 10-DMA), above which it could extend gains to at 0.7377 (daily R1). To the downside immediate support might be located at 0.7308 (20-DMA) and from there to at 0.7269/66 (Sept 5 & 2 low).