NZD/USD pulls away from daily highs, trades with modest gains above 0.6860
- NZD/USD advanced to a fresh daily top of 0.6891.
- Upbeat data from China helped kiwi gather strength during the Asian session.
- US Dollar Index stays below 93.00 on Monday.
The NZD/USD pair started the week on a firm footing supported by inspiring macroeconomic data releases from China. After climbing to a daily high of 0.6891, however, the pair lost its traction and was last seen gaining 0.36% on the day at 0.6868.
Risk-on flows return at the start of the week
Earlier in the day, the data from China revealed that Industrial Production in October expanded by 6.9% on a yearly basis and beat the market expectation of 6.5%. Furthermore, Retail Sales rose 4.3% during the same period after increasing 3.3% in September.
Meanwhile, the upbeat market mood, as reflected by rising global equity indexes, is also helping the risk-sensitive NZD/USD stay in the positive territory. At the moment, the S&P 500 futures are up 0.83% and major European stock indexes are up between 0.55% and 0.75%.
There won't be any significant macroeconomic data releases from the US in the remainder of the day and the risk sentiment is likely to continue to impact NZD/USD's movements. As of writing, the US Dollar Index was posting small daily losses at 92.66 and a decisive rally in Wall Street could make it difficult for the greenback to find demand as a safe-haven.
Technical levels to watch for