- NZD/USD refreshes intraday high to 0.6627 after China matched August month’s inflation forecasts.
- Strong support line also favored buyers looking for bounce.
- 21-day SMA restricts immediate upside ahead of August 19 tops.
- Sellers can target August lows during the fresh downside.
NZD/USD rises to 0.6623 amid the initial Wednesday’s trading. The pair recently gained support from China’s August month Consumer Price Index (CPI) and Producer Price Index (PPI) data. Also favoring the retracement from the two-week low is an upward sloping trend line from May 15.
Read: China’s August CPI showing continuing modest inflationary pressures, 2.4%
Even so, buyers are waiting for a clear break of the 21-day SMA level around 0.6630 before attacking the August 19 peak of 0.6652.
Additionally, a short-term falling trend line around 0.6690 and July month’s top close to 0.6715 will add barriers to the pair’s north-run past-0.6652.
On the flip side, a daily close below 0.6600 will drag the quote further down towards the previous month’s low of 0.6488. Though, 0.6500 and 0.6525/20 may act as extra supports.
In a case where the sellers keep the reins past-0.6488, the pair becomes vulnerable to a drop towards the 200-day SMA level of 0.6387.
NZD/USD daily chart
Trend: Pullback expected
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