NZD/USD clings to 0.6535 ahead of second-tier New Zealand data
|- Trade tensions keep worrying Kiwi traders.
- The PMI and PPI data in the spotlight for now.
NZD/USD trades little changed to 0.6535 at the beginning of the Asian session on Friday as market participants await New Zealand business NZ PMI and PPI data.
The pair lost heavily on Thursday as the US-China trade tensions and pessimism surrounding its largest customer, Australia, weighed on the Kiwi.
The US attacked China’s Huawei from both the sides, namely the White House and the commerce department, as it stopped the Chinese giant from buying Qualcomm chips for its production and also put the company on entity list that requires the US company to get a special license before selling technology to the Huawei. The Chinese company was also banned from selling technologies into the US on national security grounds.
At Australia, increase in April month unemployment rate propelled speculations of a rate cut by the Reserve Bank of Australia (RBA).
Looking forward, April month business NZ purchasing manager index (PMI) and producer price index (PPI) data for the first quarter (Q1) 2019 will be on the lookout for the Kiwi traders. While the PMI figure is expected to rise to 54.5 from 51.9, likely increase in PPI output to 1.3% from 0.8% will confront downbeat forecast for PPI input to 1.4% from 1.6%.
Technical Analysis
Despite falling heavily, the NZD/USD pair is yet to slip beneath 0.6525 in order to revisit 0.6500 round-figure and then drop towards October 2018 bottom near 0.6425 during further south-run.
On the upside, seven-week-old descending trend-line can question the quote’s pullback near 0.6580, a break of which can escalate its recover in the direction to 06600, 0.6630 and 0.6650 consecutive numbers to the north.
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