NZD/USD buyers struggle around 0.6100 despite upbeat New Zealand trade data

NZD/USD fails to portray better than forecast New Zealand Trade Balance figures while taking rounds to 0.6100 amid the early Asian session on Tuesday.

New Zealand’s April month Trade Balance grew $1,267M versus $722M prior on an MoM basis whereas the yearly figures marked $2.5B deficit against $-3.4B earlier readout. Looking at the details, the Imports dropped to $3.99B from $5.09B while Exports also weakened to $5.26B compared to $5.82B prior.

The reason for the lack of reaction could be traced from the long weekend in the US and the UK, as well as no reaction on China’s march to Hong Kong by US President Donald Trump.

Even so, hopes of the economic restart, amid the easing lockdown restrictions, kept the market’s risk-tone mildly positive on Monday. That said, S&P 500 Futures drop 0.13% to 2,985 by the time of writing.

While a light economic calendar may keep restricting the pair’s moves ahead of the busy US session, comprising Dallas Fed Manufacturing Index and housing data from the US, traders will keep eyes on the US-China tension for fresh impetus.

It should also be noted that Aussie PM Scott Morrison earlier provided loose hints of his economic plan to combat China’s punitive measures. As a result, details of the same will also be the key for the NZD/USD pair for near-term direction.

Technical analysis

Monday’s candlestick formation on the daily chart, coupled with sustained trading beyond 50-day EMA level of 0.6080, suggests the pair’s another attempt to clear the key resistance around 0.6170 comprising 100-day EMA. However, failure to gain the bids above 0.6100 keeps buyers cautious.