NZD/USD pair retreated from the descending trend line (drawn from Sep 22 high – Oct 4 high) resistance of 0.7230 after Q3 Chinese GDP matched estimates and industrial production declined.
Third straight day of gains
At 0.7215, the currency pair is up for the third consecutive day. Kiwi received a boost this week from a slight uptick in dairy prices at yesterday’s GDT auction and upbeat domestic inflation data.
However, data released in China was mixed. GDP matched estimates by coming-in at 6.7%, however, Industrial production cooled to 6.1% compared to expected rise to 6.4% from previous figure of 6.3%. Meanwhile, retail sales printed slightly better-than-expected at 10.7%. The mixed data failed to secure a breach of falling trend line hudle.
NZD/USD Technical Levels
A break above 0.7230 (falling trend line hurdle) would open doors for 0.7256 (Aug 2 high) above which the spot could target 0.73 (zero figure). On the other hand, breach of Asian session low of 0.7189 could yield 0.7135 (Oct 6 low), under which major support is seen at 0.7087 (Aug 8 low).