Tuesday, September 8, 2015

NZD/USD: Range-trade below 0.6300 extends

FXStreet (Mumbai) - The New Zealand dollar stalled its recovery versus its American counterpart in the mid-European session, now keeping NZD/USD in the upper band of 0.63 handle.

NZD/USD untouched by China trade figures

Currently, the NZD/USD pair trades 0.38% higher at 0.6283, retracing from fresh session highs reached at 0.6302 in early European trades. The Kiwi faced rejection at 0.63 barrier and thus halted its rebound from multi-year trough as the NZD bulls were exhausted following the recent run-up triggered by an upward revision to the NZ CPI.

Statistics New Zealand found a processing error in its March quarter CPI data, which saw the first quarter CPI change revised up from -0.3% to -0.2%.

While markets paid little heed to the Chinese trade balance data with exports widely viewed as going from bad to ugly. China’s trade surplus expanded in August with exports falling along with sharp drop in the country’s imports. China is New Zealand’s top export destination.

Meanwhile, markets now await the US labour markets conditions data with the US traders returning after a long weekend. Besides, Thursday’s RBNZ cash rate statement will be also closely watched.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6306 (Sept 7 High) levels and above which it could extend gains 0.6373 (Sept 2 High) levels. To the downside immediate support might be located at 0.6241 (Sept 7 Low) below that at 0.6200 (early 2009 levels).
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