NZD/USD: Recovery towards 0.6700 on its way but holidays restrict the momentum
|- Buyers focus on weak US housing data and chances of the US-China trade deal amid lack of news report.
- The US existing home sales and activity data could entertain traders amid close at New Zealand markets.
NZD/USD extends its Friday’s recovery as it trades near 0.6685 during early Monday. However, Easter Monday holiday as major global bourses, including New Zealand, restricts the trade momentum. Traders may concentrate on the US-China trade deal and the US data for fresh impulse.
With sluggish building permits and housing starts from the US joining a bit uptick in the risk tone during Friday, the Kiwi pair managed to recover from January 04 low.
The same highlights the March month existing home sales from the US up for release today at 14:00 GMT. The housing market indicator may soften to 5.30 million from 5.51 million prior.
Adding to the data will be the US Chicago Fed National activity index. The activity survey reading dipped negative to -0.29 during its previous release.
It should also be noted that news updates concerning the on-going trade discussions between the US and China, together with any news reports from China, could also take place as Chinese markets are active today. In that case, the NZD can react actively to the outcome due to China’s position as one of the largest commodity user.
NZD/USD Technical Analysis
While 200-day simple moving average (SMA) near 0.6730 and 0.6780 are likely strong upside resistances for the pair, 0.6705-10 area comprising lows marked on December 21, January 08 and January 22 can limit immediate advances.
Meanwhile, 0.6670 and 0.6650 could become sellers’ favorites during a pullback ahead of targeting January month lows near 0.6585.
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