NZD/USD: Bulls commit around 0.66 the figure on mixed trade sentiment

China’s readiness to discuss the trade deal raises the hope of good news amid the US-side pessimism.
The much-anticipated rate-cut from RBA can signal the RBNZ’s rate moves.

Anil Panchal FXStreet

Mixed response to the US-China trade-related comments offers volatile quotes of the NZD/USD pair around 0.6600 during the early Asian session on Tuesday.

While the US President Donald Trump’s threat to Chinese goods dragged the Kiwi pair down on Monday, global investors reacted differently to the Reuters’ news confirming the President Trump’s readiness for such a bold move.

Quoting slow progress over the US-China trade negotiation and recent swift in China’s tactics, President Trump announced readiness to levy an increased tariff of 25% on $200 billion worth of Chinese goods and fetch another $325 billion under the umbrella if they fail to seal the deal.

China is the world’s largest commodity user and hence markets turned risk-off on Monday after such news.

During early Tuesday, Reuters quoted the US-side negotiation leaders as they stood beside President Trump on his call for a tariff increase.

However, with Chinese delegation still to visit Washington on Thursday and Friday, few among the traders remained optimistic for the much-awaited deal.

There prevails no major data from New Zealand on Tuesday but a slew of top-tier releases from its latest customer Australia, including rate decision, retail sales, and trade balance, can offer liquidity to the New Zealand Dollar (NZD).

While the Reserve Bank of Australia (RBA) seems all set to announce 25 basis points (bps) cut to its cash rate, Reserve Bank of New Zealand (RBNZ) may also follow the suit of its close trade partner.

Technical Analysis

Only if the quote breaks 0.6590/80 area comprising lows since early January, sellers can aim for 0.6570 and 0.6510 rest-points otherwise chances of its run-up to challenge six-week-old resistance-line, at 0.6650 now, can’t be denied.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.