NZD/USD stays on the back foot amid trade-negative headlines
|- NZD/USD is in negative territory after three consecutive daily losses.
- Comments from the US Treasury Secretary tame recent US-China trade optimism.
- The US President Donald Trump earlier touted the deal.
With growing uncertainties surrounding the US-China trade deal, the NZD/USD remains under pressure for the fourth consecutive day while taking rounds to 0.6280 amid early Asian morning on Thursday.
The quote seems to have taken a jolt from the recent comments by the United States’ (US) Treasury Secretary Steve Mnuchin. Mr. Treasury Secretary crossed President Trump’s earlier comments that the deal is being prepped while saying that “as of now there is no invitation from China for more trade talks in Beijing.” It was also said that the upcoming tariffs on Chinese goods, to be activated on December 15, haven’t been discussed on the “Phase 1” deal and the same will be talked in the next round, which in turn raises prospects of another tensed negotiations between the global superpowers.
The trade deal optimism faded earlier on Wednesday after the US House of Representatives passed a bill concerning Hong Kong that was highly criticized by the Chinese part. However, President Trump’s upbeat comments helped restore some confidence before Mr. Mnuchin poured cold water on it.
It should also be noted that dovish comments from the Reserve Bank of New Zealand (RBNZ) official countered optimism spread through better than forecast New Zealand inflation data on Wednesday.
The US Dollar (USD) seems largely ignoring the drop in the Retail Sales amid overall support from the risk front. Though, mixed clues concerning the Federal Reserve’s next action and increasing odds of another rate cut could play their part when the storm ends.
While the New Zealand economic calendar is mostly silent, housing and industrial production numbers from the US could entertain the Kiwi traders during the later part of the day. However, trade headlines could keep the momentum players happy in the meantime.
Technical Analysis
Prices seem declining gradually towards 0.6250 and then to 0.6200 unless crossing 50-day Exponential Moving Average (EMA) level nearing 0.6365, which in turn holds the key for further recovery above 0.6400 mark.
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