NZD/USD takes a U-turn on mixed China data dump, 0.7100 eyed?

The NZD/USD pair came under sharp selling pressure, after a slew of mixed Chinese macro releases failed to impress the bulls, knocking-off the rate back towards 10-DMA resistance-turned support at 0.7132 levels.

NZD/USD: Eyes on NZ government announcement.

The Kiwi staged a solid comeback in the overnight trades and went onto hit daily tops at 0.7170 levels amid expectations that a New Zealand Government will be announced today, putting an end to the uncertainty around the country’s political climate.

NZ PM English: Unclear if NZ First will back Nationals to form government

However, the recovery mode soon lost strength and the spot was aggressively sold into a slightly downbeat Chinese GDP numbers, which overshadowed better-than expected retail sales and industrial production figures.

China Q3 GDP y/y a tad weaker, but meets estimates

Meanwhile, subdued trading activity seen around the US dollar across its main competitors, helps keep the downside in check, as focus shifts towards the US jobless claims and Philly Fed manufacturing index due later on the day.

NZD/USD Levels to consider                                                                              

The NZD reversed to test 10-DMA support at 0.7132, below which 0.7100 (round number) and 0.7050 (psychological levels) are key near-term downside areas. To the topside, a test of 0.7150/52 (20 & 200-DMA) due on the cards, which could open doors towards 0.7170 (daily top).