NZD/USD recovery looks to be capped off below 0.70

• Kiwi recovery struggles to maintain as NZD/USD probes lower in Asia trading.
• China data comes in good, but risk appetite is teetering anyway.

The NZD/USD is trading near 0.6975, just off recent highs after Wednesday's risk appetite recovery saw the Kiwi rebound against the Greenback through the day.

The Kiwi is beginning to slip in the overnight session, eating away at yesterday's risk recovery, and traders are largely non-reactive to the Chinese Manufacturing PMI for May, which came in slightly better than expected at 51.9, above the forecast 51.3 and compared to the previous reading of 51.4.

Also on the macro calendar for today was the ANZ Activity Outlook and Business Confidence indicators, which printed at 13.6% (prev. 17.8%) and -27.2 (prev. -23.4) respectively. 

The only macro figures remaining for the Kiwi this week is NZD Terms of Trade Index Q1, due late Thursday at 22:45 GMT, expected to print at -1.5% compared to the previous 0.8%.

NZD/USD levels to watch

As noted by FXStreet's own Ross Burland, "key support is located at 0.6880 while resistance is located at 0.7000, NZD/USD remains in the vicinity of the 200-month moving average resistance at 0.6980 and weekly technicals remain bearish. RSIs are biased to the downside although turning slightly higher with this strong short squeeze through the21-D SMA at 0.6946. A break of the 200-M SMA opens 0.7000 and then 0.7030, Early 2017 Dec tops. Below 0.6850, 0.6780 comes as next downside target meeting the lows of mid-Nov 2017."