NZD/USD challenges 0.7525 again on solid China Caixin PMI

The renewed uptick seen in NZD/USD in the Asian trades so far gained further traction, following the release of upbeat Chinese manufacturing PMI, as published by Caixin last minutes.

NZD/USD eyes on US ISM, NZ GDT price index

The NZD/USD is seen flirting with daily tops reached at 0.7525 region and looks to take-out key resistances located near the last, as an upside surprise delivered by the Chinese manufacturing PMI data offers fresh lift to the NZD. China is New Zealand’s top export destination.

China's July Caixin PMI surprises positively, at 4-month highs

Moreover, the spot also derives support from risk-on rally seen in the Asian equities and higher oil prices, which usually underpins the sentiment around the higher-yielding currencies such as the Kiwi.

The upside in the major, however, could face some hurdle amid cross-driven weakness, as solid gains seen in the AUD/NZD cross continues to keep a check on the upside. The cross is rallying hard in anticipation of a hawkish stance to be announced by the RBA shortly.

Focus now shifts towards RBA policy decision, US ISM manufacturing PMI and Fonterra’s dairy auction results lined up for release later today.

NZD/USD Levels to consider                                                                              

NZD/USD regained 5-DMA at 0.7509, with a test of 0.7526/34 (Jul 28 & May 2015 high) due on the cards, which could open doors towards 0.7660 (multi-month tops). To the downside lies 0.7503/00 (daily low/ psychological levels) still guarding 0.7483 (10-DMA) and a break back below 0.7402 (20-DMA) are key near-term downside areas.