NZD/USD: Bears eye March-mid lows amid risk-off, China data

The New Zealand dollar remains under pressure against its American counterpart so far this session, with NZD/USD keeping its range near daily low struck last hour at 0.6943.

The sentiment around the Kiwi remains poor, as risk-off trades remain in vogue amid a sell-off in risky assets - treasury yields and equities, in response to rising geo-political concerns.

Moreover, a miss on expectations seen in the Chinese CPI and PPI figures also adds to the weakness seen behind the NZD/USD pair. Softer China price pressures raise demand concerns from the world’s biggest consumer, weighing negatively on the spot. China is New Zealand’s top trading partner.

The major will continue to get influenced by risk trends in the day ahead, as there is nothing of note in terms of economic releases to be reported in the NA session.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7000/03 (round number & 20-DMA), above which it could extend gains to 7050/47 (psychological levels/ 50-DMA) and from there to 0.7075 (100-DMA/ key resistance). To the downside immediate support might be located at 0.6907/00 (Mar 15 low/ zero figure), and from there to 0.6887 (Mar 9 low), below 0.6859/ 50 (Dec 23 low/ psychological levels) would be tested.