NZD/USD attempts bounce towards 0.7300, poor China services ignored?

NZD/USD is seen making minor-recovery attempts last minutes, as the bulls paid little heed to a negative surprise delivered by the Chinese services PMI data for the month of June.

NZD/USD: Will it regain 0.73 handle.

Broad based US dollar weakness overshadows poor China services PMI data, aiding the recovery in NZD/USD, with the bulls trying hard to regain 0.73 handle. The greenback is back on the offers against its major peers, after it ran into offers just ahead of 96 handle on yet another occasion.  China’s Caixin June Services PMI surprises negatively

Moreover, the spot continues to benefit from the NZ GDT price index data released a day before, which showed that the drop in prices slowed down last fortnight. Also, weaker Treasury yields across the curve boosts the NZD as an alternative higher-yielding currency, keeping the downside limited.

Later today, the major will get influenced by the US factory orders and IBD/TIPP Economic Optimism data, while the main risk event for today remains the FOMC June meeting minutes due on the cards in the American afternoon.

NZD/USD Levels to consider                                                                              

NZD/USD managed to hold 20-DMA support at 0.7272 support, with a test of 0.7300/07 (round figure/ 5-DMA) still on the cards. Beyond which 0.7376 (Feb high) will be on sight. To the downside, 0.7263 (Jul 4 low) guards 0.7247 (Jun 23 low) and a break back below 0.7200 are key near-term downside areas.