NZD/USD nears 200-hour SMA support ahead of China trade data

• NZD/USD surrenders gains, nears the 200-hour SMA support at 0.7032. 
• China's exports are seen rising 12% in November. 
• An above-forecast data could push the Kiwi back to session highs.

NZD/USD has backed off from session highs and is closing on the crucial 200-hour Simple Moving Average (SMA) support for the first time since Nov. 23. 

The pair is currently trading largely unchanged on the day near 0.7038, having faced rejection at 0.7050 early today. The 200-hour SMA is located at 0.7032. 

Eyes China data

China's outbound shipments or Exports rose 12% year-on-year in US dollar terms in November following October's 11.4%. Meanwhile, as represented by Imports, domestic demand increased by 6.1% in November versus 4.7% in October. 

Better-than-expected Exports, a gauge of global demand, could bolster the risk sentiment, pushing the China-sensitive and commodity currencies such as the NZD and the AUD. 

The USD-side of the story remains bearish, with Friday's dismal Nonfarm Payrolls report strengthening the case for additional fiscal stimulus. Further, the news is crossing the wires that Congress has passed a one-week stopgap spending bill to avert a shutdown at the end of this week. That, along with hopes for quick economic recovery on coronavirus vaccines, are likely to stay risk assets better bid. 

Technical levels