NZD/USD hits fresh weekly lows near 0.6875 on poor China data dump
- USTs firmer in Asia.
- China data dump disappoints.
- Ignores risk-on moods.
A string of below estimates Chinese macro releases aggravated the selling pressure seen in the NZD/USD pair so far this Tuesday, knocking –off the rates deeper in the red to print fresh weekly lows at 0.6874.
NZD/USD: 0.6818 on sight
The Kiwi remains heavily offered in Asia, as divergent monetary policy outlooks between the Fed and RBNZ remain the main driving force and undermine the sentiment behind the NZD ahead of the Fed Chair Yellen’s speech scheduled later today at the ECB conference.
Meanwhile, higher Treasury yields, especially with the 10-year yields back above 2.40% - the key level, dull the demand for the Kiwi as an alternative higher-yielding asset. More so, the latest poor Chinese economic data further exacerbated the pain in the spot, given that China is New Zealand’s top trading partner.
The pair also failed to benefit from persisting risk-on trades, as attention now turns towards the US PPI data and Fed Chair Yellen’s speech due on the cards later in the NA session.
NZD/USD Levels to consider
The NZD remains supported above 0.6850/42 (psychological levels/ Nov 1 low), below which 0.6818 (multi-month lows) and 0.6800 (key support) are key near-term downside areas. To the topside, a test of 0.6900/07 (round number/ 20-DMA) due on the cards, which could open doors towards 0.6925/34 (10 & 5-DMA).