NZD/USD: Bears eye a break below 0.70 on softer China CPI

The New Zealand dollar remains better offered against its American counterpart following the release of mixed Chinese prices data, now pushing NZD/USD closer towards 0.70 handle.

Currently, the NZD/USD pair peeks into the red zone around 0.7014/15 band, as the sellers keep control amid weaker-than expected Chinese CPI figures and above estimates PPI data. China December CPI arrived at 2.1% y/y vs 2.2% expected and PPI 5.5% y/y vs 4.7% expected. China is New Zealand’s top export destination.

However, it remains to be seen if the NZD/USD pair drops further to test 0.70 handle, as broad USD weakness combined with higher oil prices lend some support to the bulls. Meanwhile, markets shift their focus towards the US fundamentals, with the second-liner data in the form of US JOLTS job openings data on the cards later today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7026 (50-DMA), above which it could extend gains to 0.7050 (psychological levels) and from there to 0.7085 (daily R2). To the downside immediate support might be located at 0.6997 (5-DMA) and from there to at 6968 (10-DMA), below which 0.6940 (20-DMA) would be tested.