NZD/USD recovers previous week's losses, trades around 0.7050

• NZD/USD is trading higher on the back of better-than-expected Chinese economic data.
• Investors are eyeing the RBNZ rate hike, US stimulus chatter grows.
• The Kiwi is getting additional support from the retreat in the US dollar.

NZD/USD has recovered the previous week’s losses to trade around 0.7050 on Monday, as upbeat Chinese economic data surprise investors. At the time of writing, the pair is trading at 0.7050 up 0.04%, seesawing between a low of 0.7032 and a high of 0.7051.

Last week, the pair reversed its initial response to a stronger-than-expected increase in the US Consumer Price Index (CPI). The rising US dollar’s value pushed the Federal Reserve System to opt for higher interest rates sooner than initially expected. 

Coming back to the present, the Kiwi is affected by better-than-expected Chinese economic data, which showed retail sales and industrial output rising 4.9% and 3.5% YoY, respectively, in October. In addition to this, a weaker US dollar, which is trading at 95.00, supports the pair.

With a light economic calendar on Monday, the kiwi traders will look for impetus from other places like the Reserve Bank of Australia (RBA) Governor Philip Lowe's speech on Tuesday. The US Import/Export data and Retail Sales MoM, also on Tuesday, remain in the docket to provide near-term direction. However, the Reserve Bank of New Zealand (RBNZ) interest rate decision remains key in the next week.

NZD/USD technical levels