NZD/USD backing away from yesterday's highs as PMI weighs on Kiwi bulls

• The NZD/USD is sagging on a PMI miss, but risk sentiment could keep the pair afloat.
• Risk appetite has come back to markets after a tense week of missile threats amidst the Syrian crisis.

The Kiwi is drifting backwards after a PMI miss that saw the business conditions index drift lower for a second consecutive month, and the NZD/USD is drifting back into yesterday's lows at 0.7370.

The Bank of New Zealand PMI printed at 52.2 versus the previous figure of 53.3, which was revised from 53.4. This is the second drop in as many months, and the Kiwi is walking back slightly as the economic conditions within New Zealand begin to lean deeper into the 'not great' side of the equation. Middling growth has been keeping the Reserve Bank of New Zealand (RBNZ) hampered on tightening easy money policies or increasing interest rates, and the NZD is joining its trading partner the AUD at the bottom of the pile as interest rate differentials begin to widen.

Broader market concerns about missile strikes in Syria have receded in early Friday trading, as have trade war fears between the US and China, but both threaten to come back in short order. The Syria crisis continues to unfold, and with the US floating another $100 billion in tariffs against China, risk sentiment could swing easily heading into the weekend.

NZD/USD Levels to watch

As FXStreet's own Ross Burland noted recently, "NZD/USD remains above the hourly trend line support while the daily picture remains bullish with the recent extension of the early April rally from 0.7260. Technicals remain bullish with higher RSI and momentum and the 21-day MA at 0.7260 should be a hard support in the interim. While above there, the 0.7430's remain compelling. There is wide support at 0.7180 and resistance at 0.7440 while the break of the descending daily resistance line has been a positive for bulls as the price extends higher."