NZD/USD clinches highs near 0.6960 post-China PMI

Despite persistent broad based US doll strength, the NZD/USD pair manages to cling onto the recovery gains, in wake of solid Chinese manufacturing PMI data.

NZD/USD eyes Monday’s high

Currently, the NZD/USD pair jumps +0.56% to hover near session highs of 0.6958, heading for a retest of 0.70 handle. The Kiwi remains strongly bid as the bulls found renewed impetus from upbeat Chinese factories data. While a risk-friendly environment prevalent in the markets also boosted investors’ appetite for the higher-yielding currency NZD.

However, thin liquidity continues to persist as New Zealand and Japanese traders are still on an observed New Year holiday, and therefore, exacerbating the moves. Next of note for the major today, remains the NZ GDT price index and a set of manufacturing PMI reports from the US due on the cards in the NA session.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6965/68 (previous high/ 20-DMA), above which it could extend gains to 0.7000 (round figure) and from there to 0.7015 (daily R3). To the downside immediate support might be located at 0.6933 (daily pivot) and from there to at 0.6900 (zero figure), below which 0.6885 (Dec 22 low) would be tested.