NZD/USD seesaws near 10-day low as traders await New Zealand, China data
|- Bears remain hold but await the key New Zealand and China data for fresh impulse.
- Trade wars remain in highlight ahead of G20.
NZD/USD seems modestly flat near 10-day low as it takes the rounds to 0.6570 at the start of Friday’s Asian session. Downbeat performance of the US statistics couldn’t please the Kiwi buyers as trade tussles and sluggish data from largest customer Australia dragged the quote to the lowest since early June on yesterday. Bears now await a slew of domestic and China data for fresh impulse.
With the US and China continued flashing mixed signals concerning their upcoming meet at the sidelines of the G20 meeting in Japan, commodity-linked currencies kept declining.
Adding to the Kiwi weakness was higher than expected Australian unemployment rate that rekindled expectations of another rate cut in August by the Reserve Bank of Australia (RBA).
Investors recovered some losses due to the fear of the Fed rate cut renewed due to plummeting import prices and initial jobless claims taking a flight. Though, the overall mood of the Antipodeans remained to favor sellers.
Looking forward, New Zealand’s May month business NZ purchasing manager index (PMI) and food price index (MOM) are the first to watch followed by China’s retail sales and industrial production.
New Zealand’s PMI might increase to 54.4 from 53.0 whereas food price index could reverse -0.1% contraction with +0.4% gain. Further, China’s retail sales (YoY) is expected to rise 8.1% in May from 7.2% in prior while industrial production bears the consensus to increase to 5.5% from 5.4% during the same period on the yearly format.
Later during the day, the US retail sales and the Michigan consumer sentiment index will also be watched. Herein, the retail sales control group figure may increase to 0.4% from 0.0% while consumer sentiment gauge may soften to 98 from 100.
Technical Analysis
Sustained trading beneath 0.6560 becomes necessary for the Kiwi pair to revisit 0.6500 and May month low around 0.6480 while the 50-day simple moving average (SMA) near 0.6610 confines the quote’s near-term upside, a break of which can recall 0.6670 on the chart.
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