NZD/USD: Traders await China/New Zealand data near 0.6670 immediate resistance-line
|- Gradual recovery continues on the back of soft US data and trade positive news.
- Five-week-old resistance like question buyers ahead of data from China and New Zealand.
NZD/USD seesaws near five-week-old descending trend-line resistance, around 0.6670, at the start of Asian trading on Tuesday.
While broad US Dollar (USD) weakness helped the pair to carry its Friday’s strength forward, traders await China’s official purchasing manager index (PMI) numbers, New Zealand’s ANZ activity outlook and business confidence details for fresh impulse.
Soft prints of the US core PCE and Dallas Fed manufacturing index superseded better than forecast growth of personal spending and dragged the greenback further towards the south.
The US-China trade negotiations are on with the positive developments offering support to the antipodeans.
Having witnessed upbeat prints in March, China’s NBS manufacturing PMI for April is likely to remain unchanged at 50.5 but non-manufacturing PMI could soften to 54.5 from 54.8. On the other hand, New Zealand ANZ business confidence could further weaken to -42.8 from -38.0 in the present month whereas activity outlook can slip to 3.1% from 6.3%.
Elsewhere, the US Chicago purchasing managers’ index (April), consumer confidence (April) and pending home sales (March) are also up for release. While Chicago PMI and pending home sales are expected to improve from respective priors of 58.7 and -1.0% to 59.0 and +0.5%, consumer confidence watchers should observe 124.1 earlier readouts for reference.
Likely pullback in China and New Zealand data coupled with the expectedly positive figures from the US may trigger the Kiwi pair’s pullback from near-term resistance-line.
Technical Analysis
On the break of 0.6670 resistance-line, 0.6720 and 0.6740 can entertain short-term buyers ahead of challenging them with 0.6775/80 horizontal area comprising multiple tops/bottoms marked during late-March and April.
Meanwhile, 0.6645, 0.6630 and 0.6600 are likely adjacent supports that can be availed during the quote’s pullback with latest lows near 0.6580 being the strong support to watch then after.
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