- Pessimism at home and largest trading partner weigh on sentiment.
- Quarterly retail sales data could offer fresh impulse.
Having witnessing sluggish GDT data and a disappointment from its largest trading partner, NZD/USD is taking rounds near 0.6500 at the start of Wednesday’s Asian session.
Despite the US Commerce Department’s temporary relief to China’s Huawei supporting the risk sentiment on Tuesday, the Kiwi pair couldn’t benefit soft credit card spending at home signaled soft retail sales print, up for release in next few hours.
Adding to the weakness was Reserve bank of Australia’s (RBA) meeting minutes that sound mostly dovish while comments from the RBA Governor that emphasized the need of June rate cut.
Australia is the largest customer to New Zealand, any challenges to the Aussie can be well received by the Kiwi as well.
Recently the bi-monthly release of GDT price index slipped to -1.2% from +0.4% prior whereas prices of whole mild power (WMP) dropped for a fourth consecutive month to -2.1%.
Traders now look forward to the first quarter (Q1) 2019 retail sales data for fresh impulse. The forecast suggests 0.0% against +1.7% prior on a quarterly basis while retail sales ex-autos, also known as core retail sales, may grow +0.9% from 2.0%.
Technical Analysis
The Kiwi is yet to provide a sustained break of 0.6500, which in turn could drag the quote to October 2018 low near 0.6425, until then chances of the oversold levels of 14-day relative strength index (RSI) to trigger the prices rise to eight-week-old descending trend-line at 0.6540 and 0.6580 can’t be denied.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.