NZD/USD: Bulls in control, 0.7200 – a whisker away

• USD bounce capped?
• Focus shifts to China inflation.

The NZD/USD pair is seen extending its upside consolidation near three-month tops into Europe, with the bulls bidding up for a break above 0.7200.

NZD/USD benefits from oil-price rally

The sentiment around the Kiwi remains underpinned so far this Tuesday, as demand for the higher-yielding currency (NZD) is on the rise amid record high global stocks and rising oil prices.

Moreover, mixed Fedspeaks continue to weigh on the greenback’s rebound versus its main peers, collaborating to the positive tone seen around the spot. Meanwhile, expectations of rising consumer prices in China also lend support to the NZD/USD pair.

The major also takes the positive cues from its OZ neighbor, after the Aussie jumped on an unexpected surge in Australian building consents data, which rose +11.7% m/m versus -1.3% expected and +0.9% previous.

Ahead of the Chinese inflation figures, the pair will look forward to the US JOLTS job openings data due later in the NA session.

NZD/USD Technicals

The pair finds next resistances at 0.7197 (3-month tops), at 0.7227 (Oct highs), 0.7250 (psychological levels). Meanwhile, the supports are located at 0.7172 (5-DMA), 0.7144 (200-DMA) and 0.7100 (zero figure).