NZD/USD ignores New Zealand Total Filled Jobs data to add gains above 0.6150
|- NZD/USD defies the previous day’s pullback from an 11-week top.
- New Zealand’s Total Filled Jobs marked the largest fall in 20 years.
- US-China tussle intensifies after the US House of Representatives passed a bill to levy sanctions on Chinese diplomats.
- New Zealand’s ANZ Business Confidence and Activity Outlook could offer immediate direction, qualitative catalysts remain on the driver’s seat.
NZD/USD refreshes the intraday top to 0.6191 during the pre-Tokyo Asian session on Thursday. In doing so, the Kiwi pair ignores the recently flashed April month New Zealand (NZ) Total Filled Jobs data while also paying a little heed to the US-China tussle.
NZ Total Filled Jobs in April fell by a record of 37,500. The report also said that the seasonally adjusted figures suggest total filled jobs fell 1.7 percent in April 2020 compared with March 2020, when it was flat.
The US House finally has the votes to pass a bill that will, if signed by President Donald Trump, levy sanctions on the Chinese diplomats over the Xinjiang issue. Earlier on Wednesday, US Secretary of State Mike Pompeo officially announced Hong Kong as “not autonomous” from China, which in turn risks losing the nation’s special trading status. In a reaction, China’s embassy has already signaled to retaliate and the exact measures are still awaited.
Elsewhere, US President Donald Trump tries to remove barriers for his re-election. Having earlier tweeted to veto the Foreign Intelligence Surveillance Act (FISA) Bill, President Trump is also ready to sign executive order against social media companies, per White House spokesperson.
As a result, the market’s risk-tone remains sluggish with S&P 500 Futures parting ways from its Wall Street benchmark with mild losses below 0.10%.
Looking forward, NZ ANZ Business Confidence and Activity Outlook data for May, expected -86.3 and -73.2% respectively against -45.6 and -42% prior, will decorate the calendar. Though, major attention will be given to the US-China tension updates for fresh impulse.
Technical analysis
A sustained break above the 100-day EMA level of 0.6171 enables the bulls to keep 0.6200 on their radar. However, 200-day EMA near 0.6295 could limit the kiwi pair’s rise afterward.
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