NZD/USD remains capped below 0.7350, despite solid China Caixin PMI

NZD/USD keeps its range below the midpoint of 0.73 handle, as the bulls remain unimpressed by a big beat in the Chinese manufacturing PMI data, as published by Caixin on Monday.

NZD/USD faces stiff hurdle at Friday’s high of 0.7348

The Kiwi tries hard to defend the bods following the release of upbeat Chinese Caixin manufacturing PMI release, but in vain, as the bulls continue to run into the key upside resistance located just shy of 0.7350 barrier amid a steady recovery seen in the US dollar across the board.

Moreover, the spot continues to stand resilient to ongoing bullish momentum in oil prices and upbeat NZ fundamentals released over the last week, as markets remain wary over the next policy move by the RBNZ, especially after most global central banks’ have shifted gear towards a more hawkish narrative,

With Chinese manufacturing data out of the way, focus now remains on the US ISM manufacturing PMI report due later in the NA session.

NZD/USD Levels to consider                                                                              

NZD/USD managed to hold 5-DMA at 0.7321(5-DMA) support, with a test of 0.7350 still on the cards. Beyond which 0.7376 (Feb high) will be on sight. To the downside, 0.7300 (10-DMA) guards 0.7266 (20-DMA) and a break back below 0.7200 are key near-term downside areas.