NZD/USD: Sellers catch a breath around 0.6600 ahead of second-tier data
|- Risk-on, sluggish data elsewhere favored the US Dollar (USD).
- First quarter manufacturing figures to provide hints for the GDP.
Having witnessed the largest fall in nearly six-weeks, the NZD/USD pair recovers to 0.6600 ahead of first quarter manufacturing sales data during early Tuesday.
The Kiwi pair dropped heavily at the start of the week as markets turned risk-on after the US ditched Mexican tariffs. Adding to the optimism was speculations that trade talks between the US and China will resume soon in G20.
The US Dollar (USD) took advantage of improving risk sentiments and better than forecast JOLTS jobs openings amid sluggish data from China, Italy, and the UK.
Speculations were also on the round that the Reserve Bank of New Zealand (RBNZ) will soon announce another rate cut as a fundamental weakness in the Kiwi economy persists.
To confirm the same today’s first quarter (Q1) manufacturing sales will be observed closely as it will provide the hints for GDP data. Forecasts suggest no change in 2.0% figure flashed during Q4 2018.
At the US, producer price index (PPI) ex-food and energy (YoY) is up for release and may inch up to 2.4% from 2.3% prior during May.
Technical Analysis
A 50-day simple moving average (SMA) near 0.6630 and 0.6680 seem nearby resistances to watch if one wants to aim for 200-day SMA around 0.6710.
On the downside, 0.6560 mark comprising 21-day SMA holds the gate for the quote’s further declines to 0.6500 and 0.6480 numbers to the south.
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.