NZD/USD flirts with lows on mixed China data dump

The Kiwi is seen under mild selling pressure, although unable to find a clear direction following the release of mixed Chinese data dump. The Jan-Fed combined China’s macro news showed that the industrial production and fixed asset investment data bettered expectations, while the retail sales figures missed estimates.

The NZD/USD pair waver in the familiar range, within a striking distance of daily lows reached just ahead of 0.69 handle, as the bears manage to retain control somewhat amid a steady recovery mode seen in the US dollar versus its main competitors.

Meanwhile, sustained weakness in oil prices combined increased nervousness ahead of Wednesday’s FOMC decision keep the NZD bulls on the back foot. Focus now shifts towards a fresh batch of US economic data due later this week, while today, the US PPI data release will hog the limelight and influence USD price-action.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6950/58 (classic R1/ Fib R2), above which it could extend gains to 0.7000 (zero figure) and from there to 0.7064 (20-DMA). To the downside immediate support might be located at 0.6889/87 (Jan 4 & 3 low/ Fib S3) and from there to at 0.6859/ 50 (Dec 23 low/ psychological levels), below which 0.6800 (round number) would be tested.