FXStreet (Mumbai) – The New Zealand dollar stages a minor pullback versus its American rival in the mid-Asian session, with NZD/USD moving away from fresh six and a half year lows struck at 0.7241 on Monday.
NZD/USD lifted on China trade data
Currently, the NZD/USD pair trades 0.31% higher at fresh session highs near 0.6280. The Kiwi extends its recovery from multi-year trough as the NZD bulls were offered some respite following an upward revision to the NZ CPI while upbeat Chinese trade figures also lent a helping hand.
Statistics New Zealand found a processing error in its March quarter CPI data, which saw the first quarter CPI change revised up from -0.3% to -0.2%. While China’s trade surplus expanded in August with exports falling less than expectations. China is New Zealand’s top export destination.
Meanwhile, markets now await the US labour markets conditions data with the US traders returning after a long weekend. Besides, Thursday’s RBNZ cash rate statement will be also closely watched as markets widely anticipate a rate cut in order to counter the effects of the recent China fears.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6306 (Sept 7 High) levels and above which it could extend gains 0.6373 (Sept 2 High) levels. To the downside immediate support might be located at 0.6241 (Sept 7 Low) below that at 0.6200 (early 2009 levels).
(Market News Provided by FXstreet)