NZD/USD little changed near 0.7115 post-China trade

The NZD/USD pair remains relentlessly sold-off in the Asian trades, but manages to keep the 0.71 barrier after the Chinese imports data came in worse-than expectations.

NZD/USD slammed on divergent monetary policy outlooks

Currently, the NZD/USD pair trades -0.42% lower at 0.7114, hovering above 0.71 handle over the last few hours. The bears continue to ride higher, as the divergent monetary policy outlooks between the Fed and RBNZ got more pronounced after the release of stronger US jobs report. While last week’s rate cut by the RBA, adds pressure on the RBNZ to ease further this week.

However, the Kiwi failed to react to the Chinese trade report, which showed that the country’s exports stood firmer, while the imports plunged sharply last month. While a better risk tone prevalent in the markets, amid higher equities as well as oil prices, offer some support to the minor-recovery attempts seen in the major above 0.71 handle.

The week ahead holds a lot in store for the NZD, with the Chinese CPI figures due out before the RBNZ cash rate decision, China’s industrial production and US retail sales data.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7141/59 (5 & 10-DMA), above which it could extend gains to 0.7200 (psychological levels). To the downside immediate support might be located at 0.7087 (daily low) and from there to at 0.7064 (weekly low).