NZD/USD defends 0.7000 post-China data dump

• NZ Treasury GDP downward revisions offset better China data.
• DXY stabilizes post-Fed sell-off.
• US retail sales in focus.

The NZD/USD pair defends the 0.70 handle following the release of the Chinese data dump, as the sentiment remains weighed down by the NZ Treasury’s half-year economic & fiscal report.

NZD/USD: Next support seen at daily pivot of 0.6993

The spot stalled its four-day rebound and fell into the red zone in the Asian trades, looking to extend its retreat from two-month highs of 0.7027, as the Chinese macro releases left the NZD bulls unimpressed.

China Nov data dump: Industrial production a beat, Retail sales meet estimates

The Kiwi came under renewed selling pressure this Thursday after the new Labour-NZ First Government has released its first economic and fiscal report that showed downward revisions to the NZ growth forecasts for the next two years when compared to the PREFU forecasts.

Moreover, the US dollar stalled its post-Fed sell-off against its main rivals, as Treasury yields stabilize across the curve, which further added to the weight on the major.

With the Fed event and Chinese data dump out of the way, focus now shifts towards the US retail sales and import prices data for fresh near-term trading opportunities.

NZD/USD Levels to consider

The spot trades near 0.7000 (psychological levels), below which 0.6993 (daily pivot) and 0.6934 (Dec 13 low) are key near-term downside areas. To the topside, a break above 0.7027 (2-month tops) could open doors towards 0.7057 (100-DMA).