NZD/USD: Bears keep dominating amid risk-off


  • NZD/USD remains on the back foot as traders stay away from riskier assets amid recession fears.
  • Data from China, the EU and not so upbeat trade headlines initially triggered risk aversion.
  • 10-2 year yield inversion grabbed the headline.

With the fears of the global recession taking the rounds, the NZD/USD pair holds on to sellers’ list while trading near 0.6440 at the start of Thursday’s Asian session.

It all began with China’s below forecast activity numbers for July and then rolled on by sluggish data from the EU. Adding to the market fears are not so positive trade headlines from China. The dragon nation isn’t satisfied with the US rolling back tariffs and wants more of what discussed on Osaka to remain upbeat while talking trade in September.

As a result, equities face the sea of red while inversion of the US 10-year and 2-year treasury yields grabbed the headlines. It was the first time since 2007 that such yield inversion took place. The previous cases have generally preceded a global recession and hence gain high market attention this time around.

While trade news is likely to keep dominating the headlines amid lack of domestic data, employment numbers from the largest customer Australia could offer fresh impulse.

Technical Analysis

The three-week-old trend-line, at 0.6460, offers immediate resistance ahead of July 09 top surrounding 0.6500. Alternatively, 0.6400 round-figure and the latest low near 0.6378 can keep luring bears.

    1. R3 0.6527 
    2. R2 0.6499 
    3. R1 0.6476 
  1. PP 0.6448
    1. S1  0.6425
    2. S2  0.6397
    3. S3  0.6374

 

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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD stays under pressure around 0.6830 while beginning the NFP day

AUD/USD declines to 0.6830 during the initial Friday morning in Asia. The quote stretches losses made on Thursday as the second-tier Aussie data becomes the latest disappointment.

AUD/USD News

USD/JPY steady at 200-DMA ahead of critical US NFP data

Steady below the 200-day moving average, Yen fell from 108.97 to 108.66 overnight as positive trade deal headlines flowed through the news wires and helped US stocks eke out further gains. Risk appetite was solid into the close on Wall Street overnight.

USD/JPY News

US Non-Farm Payrolls November Preview: Labor market continues to defy concerns

Non-farm payrolls are predicted to rise 180,000 in Nov following Oct’s 128,000 increase. The unemployment rate is expected to be unchanged at 3.6%. Hourly earnings will gain 0.3% in Nov after October’s 0.2% increase and annual earnings will be stable at 3.0%.

Read more

Gold: Modestly changed to $1475 as markets turn cautious ahead of US NFP

Gold fails to extend the previous day’s recovery while trading near $1475/76 amid Friday’s Asian session. That said, the yellow metal registers failures to close beyond 50-day EMA for the third consecutive day.

Gold News

GBP/USD: 1.3180 holds the key to further upside

GBP/USD traders modestly changed around 1.3160 by the press time of early Asian session on Friday. That said, overbought conditions of the 14-day Relative Strength Index (RSI) and the recent stop in north-run make buyers doubtful.

GBP/USD News

Forex MAJORS

Cryptocurrencies

Signatures