NZD/USD tests key resistance levels as buyers attempt to secure a break higher
NZD/USD is hovering just above its 200-day moving average
The pair is trading up to a session high of 0.6723 now and is holding just above the 200-day MA (blue line) @ 0.6716. If buyers successfully manage a break above that, it will shift the bias in the pair to be more bullish again.
However, price is also running into some resistance from the highs seen at the start of the month around 0.6720-30 currently. This area and the level above will be the spot to watch in trading today as it could see buyers start to chase a move higher in NZD/USD should they hold a break above that.
As it stands, the kiwi is buoyed on the back of more positive Chinese data for June earlier today - despite the backdrop of the weakest annual growth pace in 27 years in Q2 - and also from some cross-selling in AUD/NZD.
There isn't much else in focus for markets right now so I would argue that the conviction to break higher remains a little tepid. But if AUD/NZD can start chasing a move below 1.04 there is a strong case for the kiwi to still find further support to move higher.
Either way, with fundamentals providing just a little lift for now, keep an eye on the technicals to see what the next move may be. There isn't much in terms of key events before the US retail sales data tomorrow but we do have some US data (Empire Fed manufacturing data) later so just be aware.