NZD/USD clings to modest recovery gains, just above 0.6400 mark
- NZD/USD shows some resilience on stronger Chinese CPI print.
- A subdued USD price action remained supportive of the uptick.
- Concerns over the deadly coronavirus might cap any strong gains.
The NZD/USD pair struggled to register any meaningful recovery and held near the 0.6400 round-figure mark, or 2-1/2-month lows set earlier this Monday.
The pair showed some resilience below the mentioned handle and witnessed a modest rebound during the Asian session on Monday following the release of hotter-than-expected Chinese consumer inflation figures.
Upside seems limited
The pair, for now, seems to have stalled its recent bearish trajectory to the lowest level since November 19 and was further supported by a subdued US dollar price action on the first day of a new trading week.
As investors looked past Friday's upbeat headline NFP print, a mildly weaker tone around the US Treasury bond yields led to the greenback's consolidative price action and extended some support to the major.
Meanwhile, the prevailing cautious mood, amid concerns about the economic impact of the deadly coronavirus, turned out to be one of the key factors that might cap any further gains, at least for the time being.
Hence, it will be prudent to wait for some strong follow-through buying before confirming that the pair might have bottomed out in the near-term and positioning for any further near-term appreciating move.
In absence of any major market-moving economic releases, the broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the pair's momentum on Monday.
Technical levels to watch