New Zealand dollar holds above 0.5850 after Chinese inflation data
The New Zealand dollar maintained its gains and was trading above 0.5850 after Chinese inflation data was released. The kiwi held the level through the session without giving back its earlier position, and 0.5850 is the…
Key takeaways
- The New Zealand dollar held above 0.5850 following the release of Chinese inflation data.
- The kiwi maintained its earlier gains through the session without reversing after the Chinese data landed.
- 0.5850 is the key level in focus on the tape and the area traders are watching into the close.
- The event that lifted the kiwi has already cleared, leaving long positioning to determine whether 0.5850 holds as the floor.
- A hold at the level after a macro release is described as the strongest argument for the currency's setup.
The New Zealand dollar maintained its gains and was trading above 0.5850 after Chinese inflation data was released. The kiwi held the level through the session without giving back its earlier position, and 0.5850 is the number in focus on the tape.
The currency did not reverse after the Chinese data landed. A hold at the level after a macro release is the clearest argument the setup has going for it. The tape has defined 0.5850 as the area, and the session has come down on the right side.
The contrarian case is not far from the surface. The event that lifted the kiwi has cleared. Holding a level after a data print is an outcome, but the input that drove the gains is now behind the session. Whether 0.5850 stays the floor once the Chinese inflation effect fades from the tape is what long positioning is actually carrying.
What to watch is the 0.5850 line into the close.