NZD/USD heavy, regains 0.7200 post-China services

The bears fought back control in the Asian session this Wednesday, allowing a corrective slide in NZD/USD from three-week tops reached near 0.7260 a day before.

NZD/USD hovers around 5-DMA at 0.7203

Currently, the NZD/USD pair drops -0.52% to 0.7207, recovering from fresh session lows struck at 0.7198 some minutes ago. The NZD/USD pair appears to have found some impetus from mixed Chinese PMI reports, with the services PMI missing expectations, while the composite figures came in much stronger than expected.

The recovery in the Kiwi pair is also fuelled by positive oil prices, which has helped ease risk-off trades somewhat, allowing a minor-recovery in the Asian equities. Moreover, the sentiment around the NZD/USD pair also remains underpinned on the back of a jump in the NZ GDT price index, with the gauge   increasing 6.6% following 0.0% booked on July 19.

Data-wise, markets digest the latest wage growth data released out of New Zealand, while awaiting a fresh batch of US economic releases for further momentum on the major.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7250/61 (psychological levels/ multi-week highs), above which it could extend gains to 0.7300 (round number). To the downside immediate support might be located at 0.7180 (5-EMA) and from there to at 0.7122/19 (10 & 50-DMA).