- NZD/USD prints mild gains, up for the fourth day as bulls attack the 0.6600 threshold.
- US dollar weakness pleases Antipodeans ahead of the key data/events.
- Market sentiment dwindles amid uncertainty over US stimulus, Brexit and trade war.
- China PMIs can keep manufacturing optimism on cards, polls favor Joe Biden’s victory.
NZD/USD remains positive around 0.6595 during the early Asian session on Wednesday. The pair recently benefited from New Zealand’s Building Permits while extending the previous three-day winning streak. It’s worth mentioning that the greenback’s downside becomes the major concern for global traders off-late, which in turn helps the kiwi pair to remain positive.
New Zealand’s seasonally adjusted Building Permits grew beyond -1.4% forecast and -4.6% revised prior to +0.3% in August.
US presidential debate is the key…
With the World Trade Organization’s (WTO) authorization to the European Union (EU) to slap $4 billion of trade tariffs on the US goods, coupled with China’s inability to perform on the Sino-American trade deal, US President Donald Trump will be under fire during the first round of face-off with Republicans, up for publishing at 01:00 GMT.
Also likely to challenge the Republican leader will be the inability to roll out the much-awaited stimulus bill despite Democratic readiness to ease the stand. Recently, the White House counter-offered the opposition’s proposal of $2.2 trillion with $1.5-$1.6 trillion.
On the other hand, the British House of Commons’ passage of the Internal Market Bill (IMB) is likely to offer additional worries for the on-going Brexit talks. Furthermore, the coronavirus (COVID-19) resurgence becomes extra downer for the risk-tone sentiment and so does China’s dislike for the Trump administration.
Against all odds, S&P 500 Futures gain 0.10% despite Wall Street’s sluggish performance. The reason could be spotted from the increasing odds of Democratic victory in the 2020 election.
China’s September month NBS Manufacturing PMI will also be out at 01:00 GMT. The official activity numbers may rise from 51.0 to 51.2. Though, the Caixin Manufacturing PMI, up for publishing at 01:45 GMT, may remain unchanged near 53.1 during the stated month.
While data from Beijing may keep the NZD/USD buyers hopeful, Joe Biden’s dominance in the debate may help the greenback to recover the recently lost grounds.
Technical analysis
A daily close beyond 0.6600, comprising lows marked during late-August and September 09, becomes necessary for the bulls to keep the reins, which in turn can lead them towards the 50-day SMA level of 0.6637. Failing to do so can drag the quote back to a 100-day SMA level of 0.6519 during the fresh downside.
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