NZD/USD: Bears eye a break below 0.6900 amid mixed China prices

The Kiwi extends its overnight bearish consolidation phase into the Asian trades, now clinging to losses just ahead of 0.69 handle.

The NZD/USD pair remains exposed to further downside risks as the Chinese prices pressures data left markets little impressed, with China’s CPI hitting the lowest rate since Jan 2015 on annualized basis, while the PPI numbers bettered expectations.

Moreover, the greenback hovers near five-day tops versus its major rival on the back of higher treasury yields, as the bulls cheer surprisingly positive US ADP jobs numbers. 

Yesterday’s ADP survey added 298,000 new jobs during February, when compared to 184,000 job additions expected in the reported month. Upbeat jobs data bolstered March Fed rate hike bets and brought divergent monetary policy outlooks between the Fed and RBNZ back into play.

All eyes now remain on the crucial US NFP data due out on Friday, in the meantime, the weekly jobless claims and import prices data from the US will offer fresh incentives.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6961/64 (5-DMA/ classic R1), above which it could extend gains to 0.7000 (zero figure) and from there to 0.7044 (10-DMA/ classic R3). To the downside immediate support might be located at 0.6889/83 (Jan 4 & 3 low/ Fib S2) and from there to at 0.6859/ 50 (Dec 23 low/ psychological levels), below which 0.6800 (round number) would be tested.