NZD/USD clings to 0.6500 despite downbeat New Zealand consumer survey data
|- Fails to benefit from weak US data.
- Shows little reaction to 3-quarter low New Zealand consumer survey.
- Fewer data on hand but details/events at the largest customers can entertain traders.
Having attempted a little successful comeback, the NZD/USD pair clings to 0.6500 despite three-quarter low New Zealand consumer survey results at the start of Tuesday’s Asian session.
The Kiwi tried taking advantage of sluggish manufacturing and housing data from the US on Monday. However, looming concerns over the US-China trade war and comparative fundamental strength of the US Dollar (USD) maintained downside pressure on the pair.
The second quarter (Q2) 2019 data from New Zealand’s Westpac consumer survey dropped to 103.5 versus 103.8 prior, lowest since September 2018. However, traders showed little reaction to the sentiment data.
While the local economic calendar doesn’t have anything to direct immediate moves, Australia’s first quarter house price index, RBA meeting minutes and China’s May month house price index could entertain short-term traders. Following that, US housing market stats will also garnet investor attention.
China’s house price index rose 10.7% during April while its counterpart from Australia’s contracted -2.4% during last quarter of 2018 and is likely to improve to -1.6% on a QoQ basis this time. The US building permits for May could remain unchanged at downwardly revised 1.290 million whereas housing starts might increase to 1.240 million against 1.235 million earlier.
Minutes of the latest Reserve Bank of Australia (RBA) meeting are less likely to offer any more signals for future rate cuts but will be observed to gauge policymakers’ tone while announcing the latest rate alteration.
Technical Analysis
Repeated failures to break the yearly low of 0.6480 continues to highlight chances of a pullback to 0.6530 a break of which can escalate the recovery towards May 27 high of 0.6560. Though, a downside break of 0.6480 might not refrain from dragging the quote to October 2018 lows near 0.6460 prior to shifting market focus to the year 2018 bottom of 0.6430.
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