NZD/USD: despite slide on Wall Street, Kiwi remains above 21-D SMA

• NZD/USD pullback alarms bulls, but 21-D SMA intact.
• NZD/USD bulls have eyes on descending trend resistance level, 0.7430's.

NZD/USD has been better bid from the 0.7290's to 0.7326 before supply came in after a slide in US stocks amid a report by the New York Times that the Federal Bureau of Investigation had raided the office of Michael Cohen, President Donald Trump's personal lawyer. Currently, NZD/USD is trading at 0.7305, up 0.49% on the day, having posted a daily high at 0.7326 and low at 0.7269.

Looking ahead, Chinese President Xi and business conditions risks

In business we trust: data events for the antipodeans - ANZ

Despite the bounce in equities, the focus in currency markets was unconfirmed headlines that China was considering using yuan devaluation as a tool in the US-Sino trade spat, which weighed on the USD and aided the Kiwi and currencies higher. "All attention today will be on a speech by Chinese President Xi Jinping, and the tone he takes. Through all this, the NZD continues to hold up remarkably well, but we maintain a broad ‘sell on rallies’ view," analysts at ANZ explained.

NZD/USD levels

The break of the descending daily resistance line is a positive for bulls and the subsequent rally through the 50-D SMA at 0.7281 came with the spike in RSI and momentum behind the move. Technicals remain bullish despite the recent slide from the highs and on an extension of the pullback, the 21-day MA at 0.7257 should be a hard nut to crack. While above there, the 0.7430's remain compelling.