NZD/USD consolidates near 3-month highs post-China trade

Having failed to resist above 0.72 handle again, the NZD/USD pair trimmed gains, although keeps its range near the last, following the release of upbeat Chinese trade report.

NZD/USD rejected at daily R1

The major prolongs its upward trajectory into a fifth day today, as the bulls find support from a recovery in oil prices and better-than expected China’s exports and imports data, which eased concerns over the country’s external demand. China is New Zealand’s biggest export destination.

However, further upside appears limited, as the greenback continues to cheer Comey’s prepared testimony published on Senate intelligence Committee’s website, which offered nothing new on Trump’s investigation.

Looking ahead, the spot will take cues from the persisting risk trends, with the UK election and ECB expected to be the key risk drivers today.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7211/12 (3-month tops/ daily classic R1) above which it could extend gains to           0.7250 (psychological levels) and from there to 0.7280 (key resistance). To the downside immediate support might be located at 0.7170 (5-DMA), and from there to 0.7129/0.7100 (10-DMA/ round figure), below 0.7070 (200-DMA) would be tested.