- Upbeat China trade data buoys antipodeans, NZD/USD continues gaining traction for the second consecutive session.
- Data today showed China June imports in USD terms rose at an annualised rate of 17.2%, beating the estimated rise of 14.5%.
- Solid Chinese imports would help boost New Zealand’s external demand, as China is New Zealand’s biggest export destination.
- Continuous slide in the UST yields further benefitted higher-yielding currencies and weighed on the USD.
- The pair has broken above 20-DMA at 0.7272, close above could see further upside.
- Scope for test of 0.7345 levels, break above could see test of 0.74 handle.
Support levels - 0.7272 (20-DMA), 0.7268 (5-DMA), 0.72, 0.7170 (June 12 lows)
Resistance levels - 0.7310 (July 7 high), 0.7342 (78.6% Fib), 0.74
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-struggles-at-5-DMA-bias-lower-stay-short-793942) hit TP1&2.
Recommendation: Good to go long on dips around 0.7290, SL: 0.7240, TP: 0.7345/ 0.74
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 22.3903 (Neutral), while Hourly USD Spot Index was at -100.591 (Bearish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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