NZD/USD sits at 4-month tops post-China CPI

The NZD/USD pair bounced-off a brief dip below 0.72 handle in early Asia, and now enters a phase of upside consolidation, having reverted to the familiar range near four-month tops of 0.7224.

NZD/USD underpinned by improved risk sentiment

The major clings to gains amid a recovery in risk appetite, as markets cheer a potential walk away from Hard Brexit, with Conservatives seen losing majority in the UK election.

Moreover, the sentiment around the NZD/USD pair remains buoyed on the back of slightly upbeat Chinese CPI and PPI figures. However, upside remains capped amid subdued oil prices and a broadly stronger US dollar, in the wake of the UK political uncertainty and Comey’s testimony.

The Kiwi will closely track the broader market sentiment in the day ahead, in absence of significant economic release from the US docket.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.7224 (4-month tops) above which it could extend gains to 0.7250 (psychological levels) and from there to 0.7280 (key resistance). To the downside immediate support might be located at 0.7190 (5-DMA), and from there to 0.7147 (10-DMA), below 0.7100 (zero figure) would be tested.