China Caixin PMI beats estimates, NZD/USD regains 0.72 handle

China Caixin PMI, a private gauge of factory activity, bettered estimates to signal expansion of activity in July and pushed commodity dollars including NZD higher.

NZD/USD pair jumped to a session high of 0.7212 following the release of the upbeat data.

Nears key Fibo level of 0.7215

The spot is within a touching distance from 0.7215, which is 76.4% Fibo extension of 0.6347-0.7054-6675. Kiwi clocked a low of 0.7188, but the move lacked any fundamental catalyst. China government manufacturing PMI did miss the estimate; however, services PMI posted big gains.

Caixin PMI came-in at 50.6 in July, beating the estimate of 48.7 by a wide margin, thus helping the pair make a move above 0.72 handle.  The spot was last seen trading around 0.7210.

NZD/USD Technical Levels

A break above immediate resistance of 0.7215 (76.4% extension of 0.6347-0.7054-0.6675) would expose 0.7255 (June 23 high). A violation there could yield 0.7325 (July 12 high). On the other hand, a breakdown of support at 0.7188 (daily low) would open doors for 0.7123 (5-DMA) and 0.71 handle.