NZD/USD revisits session lows on China data

Soft China data release weighed over NZD, pushing the NZD/USD pair back to session lows around 0.7190 levels.

Hovers below 0.72

The spot was last seen trading around 0.7195 levels. Kiwi dollar has been on the back foot since early Asia as narrowing NZ-US 2-yr yield spread is finally forcing NZD bulls to reconsider the sustainability of the recent rally.

China data only adds to the woes, however, the broader market reaction so far has been muted, thus the losses in the pair have been restricted around 0.7190 levels.

NZD/USD Technical Levels

A break above immediate resistance at 0.7256 (Aug 2 high) would open doors for a rally to 0.7298 (June 24 high). A violation there could yield 0.7325 (July 12 high). On the other hand, a breakdown of support at 0.7178 (5-DMA) would expose support at 0.7119 (50-DMA) and 0.7087 (Aug 8 low).