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NZD/USD: Bears fight back control on China trade, below 0.67

FXStreet (Mumbai) - The NZD bulls lost ground in the mid-Asian after a non-stop 10-day winning streak, sending NZD/USD below 0.67 handle and further away from multi-month highs.

NZD/USD loses 0.67 handle

Currently, the NZD/USD pair trades -0.60% lower at 0.6678, sliding nearly 30 pips on Chinese trade data. The Kiwi was sold-off near hourly 20-DMA placed at 0.6715 region and dropped sharply in response to the Chinese trade numbers which showed bigger than expected drop in the imports data and thus pointed out to the persisting concerns over weak domestic demand in the world’s second largest economy.

Chinese trade figures revealed a 17.7% y/y drop in imports last month, following a 14.3% decline in August.

The NZD/USD pair also came under renewed pressure after falling Asian indices amid resurfacing China concerns and overnight sell-off in crude prices, further fuelled risk-off sentiment and weighed on higher yielding currencies such as the NZD.

Looking ahead, nothing relevant on the macro calendar will be reported in the day ahead and hence, attention shifts towards Wednesday’s Chinese CPI figures and a batch of key US economic data.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6715 (hourly 20-SMA) levels and above which it could extend gains to 0.6742 (Oct 12 High) levels. To the downside immediate support might be located at 0.6656/60 zone (Today’s Low & hourly 100-SMA) below that 0.6600 (round number).

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