NZD/USD climbs above mid-0.67s ahead of US data


  • Trade data from China helps NZD gather strength on Friday.
  • US Dollar Index drops below 97.
  • Coming up: Import price index and consumer confidence data from the U.S.

The NZD/USD pair came under modest selling pressure in the early Asian session and touched its lowest level since late January at 0.6713 after the data from New Zealand showed that the Business NZ PMI slumped to 51.9 in March from 53.4 in February and missed the market expectation of 54.4 by a wide margin. However, with the trade data from China coming in stronger than expected, the NZD started to gather strength and preserved its momentum during the European trading hours amid broad-based USD weakness.

Trade surplus in China rose to $32.64 billion in March from $4.08 billion in February and came in much higher than analyst' estimate of $7.05 billion. Although a sharp decline in imports, 7.6%, seems to have caused the trade surplus to widen, antipodeans were able to take advantage of the improved sentiment.

Meanwhile, ahead of the University of Michigan's preliminary Consumer Confidence Index, which is expected to edge lower to 98 from 98.4 seen in the previous release, and import/export price index data from the U.S., the greenback struggles to find demand with investors staying focused on risk-sensitive assets. At the moment, the US Dollar Index is at 96.80, losing 0.37% on a daily basis.

Technical levels to consider

As of writing, the pair is trading at 0.6760, adding 0.5% on the day and could face the initial resistance at 0.6770 (Apr. 11/Apr. 10 high) ahead of 0.6800 (psychological level/100-DMA and 0.6825 (50-DMA). On the downside, supports could be seen at 0.6735 (200-DMA), 0.6715 (Feb. 12 low) and 0.6670 (Jan. 4 low).

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

EUR/USD trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.

EUR/USD News

GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.

GBP/USD News

USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.

USD/JPY News

Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures