NZD/USD retraces to 0.6410 amid lack of fresh clues
|- NZD/USD trades near the eight-day low, flashed yesterday, amid broad USD strength.
- The US President’s trade positive tweets, an extension of Huawei relief favored risk on.
- Lack of data/events will keep trade news in the spotlight.
Following its drop to early-month low, NZD/USD retraces to 0.6410 at the start of Tuesday’s Asian session.
The Kiwi pair slumped at the week-start as the markets cheered the 90-day delay on Huawei restrictions, previously levied by the US, coupled with the US President’s tweet upbringing the odds of a trade deal with China.
Investors also respected the overall strength of the US Dollar (USD) amid broad risk-on, as can be seen in the recovery of global treasury yields. It should be noted that market players gave little importance to the US President’s call for a 100 basis point (bps) cut into the Fed rate as President of the Federal Reserve Bank of Boston Eric Rosengren poured cold water on the statements.
Elsewhere, China’s revision of loan rates is considered as a step closer towards the free-floating currency system, adding fuel to market optimism.
Looking forward, investors have no major data/events scheduled for publishing at home, which in turn could keep them tilted to trade news for fresh direction. However, monetary policy meeting minutes from the Reserve Bank of Australia (RBA) can offer intermediate moves to the quote as Australia is the latest customer of New Zealand.
Technical Analysis
While 0.6377 and 2016 low, near 0.6348, are likely immediate targets for sellers, buyers looking for 0.6475 and 0.6500 can enter on the break of 0.6440 short-term trend-line resistance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.