- NZD/USD ends two consecutive sessions of declines as Kiwi continues to recover ground largely on the back of upbeat Chinese data.
- Chinese macro updates came in positive, with the GDP figures meeting expectations, while the industrial production, retail sales and fixed asset data outpacing estimates.
- China's Q1 GDP y/y 6.7% vs 6.7% expected; March Industrial Production y/y 6.8% vs 5.9% expected; March Fixed Assets (excluding rural) YTD y/y 10.7% vs 10.4% expected; March Retail Sales y/y 10.5% vs 10.4% last.
- Renewed risk-on wave in the markets on positive data supporting the higher-yielding currencies.
- Moreover, price action in oil highly dominates the resource-linked NZD, and profit-taking on the NZD shorts ahead of the weekend’s oil producers’ meet in Doha also adds support.
- On the Technical side, the pair has broken strong trendline resistance at 0.6885 on the 2-hourly charts.
- Momentum studies are bullish, with immediate support and resistance at 0.6876 (2H 5-SMA) and 0.6920 (Apr 14th highs).
- On the data front, focus will be on the US macro updates due later today for fresh cues on the USD moves.
Recommendation: Good to buy dips around 0.6885/90, SL: 0.6840. TP: 0.6920/0.6940
