- Fresh USD supply supports.
- China inflation data arrives mixed.
- Focus shifts to the US data.
The NZD/USD pair is seen struggling to extend its recovery mode above 0.7160 levels, as the bulls remain unimpressed by mixed Chinese inflation readings for December.
NZD/USD benefits from oil-price rally
The Kiwi extends its upside consolidation phase near multi-month tops into a fourth day today, although remains in the red amid below estimates Chinese CPI and PPI releases.
China’s Dec CPI ticks higher, but misses estimates
However, a retreat in the US dollar versus its major peers from six-day tops of 92.36 levels, helps keep the recovery mode intact in the spot. The greenback extended the rebound into a second consecutive day on Tuesday after the 10-year Treasury yields rallied hard and hit fresh ten-month tops above 2.5%.
Further, the ongoing rally in oil prices also helps keep the sentiment underpinned around the resource-linked NZD. Looking ahead, the USD dynamics and risk trends will continue to play a key role ahead of the US import prices and wholesale inventories data.
The pair finds next resistances at 0.7197 (3-month tops), at 0.7227 (Oct highs), 0.7250 (psychological levels). Meanwhile, the supports are located at 0.7145/36 (200 & 10-DMA), 0.7100 (zero figure) and 0.7080 (20-DMA).