NZD/USD: Will the buyers retain control above 0.6900?

The NZD bulls are seen making another attempt above 0.69 handle, now printing fresh session tops at 0.6910, in response to upbeat China’s CPI data and persistent broad based US dollar softness.

The Chinese annualized CPI figures bettered expectations for the second straight month in April, while the PPI decelerated sharply last month. China's April CPI y/y upbeat, but PPI disappoints

Moreover, the spot found support from ongoing USD weakness across the board, as investors take profits off the table after yesterday’s rally, which was triggered by rising June Fed rate hike bets, hawkish Fedspeaks and US Commerce Secretary Wilbur Ross’ comments. 

US Commerce Sec. Ross: Dollar is not too strong, other currencies are too weak

Also, higher oil prices on the back of bullish API report, backs the renewed upside in the commodity-currency. Meanwhile, a short-covering rally in the NZD/USD pair ahead of the RBNZ policy decision cannot be ruled out, especially after two back-to-back sessions of losses.

With the Chinese data out of the way, all eyes now remain on the RBNZ policy decision due tomorrow in early Asia for next direction. In the meantime, the US import prices and Fedspeak will keep the traders busy.

NZD/USD Levels to consider                                                                              

To the upside, the next resistance is located at 0.6928 (May 9 high), above which it could extend gains to 0.6948/50 (May 8 high/ psychological levels) and from there to 0.6975 (50-DMA). To the downside immediate support might be located at 0.6874/70 (classic S1/ Fib S2), and from there to 0.6837 (multi-month lows), below 0.6800 (key support) would be tested.