- NZD/USD refrains from breaking 0.6400, while not rising much as well, amid trade optimism at the US and China.
- US Treasury Secretary Mnuchin recently took a U-turn from the previously cautious statement.
- New Zealand’s Business NZ PMI will become an immediate catalyst, with trade headlines holding the reins, ahead of the US consumer-centric data.
With latest statements from the US Treasury Secretary Steve Mnuchin setting the upbeat tone for the US-China trade relations, the NZD/USD pair takes the rounds to 0.6400 at the start of Friday’s Asian session.
Taking a U-turn from previous statements like the US President Trump is prepared to keep tariffs in place and raise them if necessary, Treasury Secretary Mnuchin recently mentioned that he is hopeful China trade talks will make progress.
The Kiwi pair wobbled on Thursday as speculations of an interim US-China trade deal was turned down after an initial boost to the Antipodeans. Prices were also affected due to the strong Core Consumer Price Index (CPI) data from the United States (US) as well as reaction to the European Central Bank’s (ECB) bazooka of monetary easing with 10 basis points (bps) of interest rate cut and open-ended QE of €20 billion per month starting from November 1st.
New Zealand’s August month Business NZ Purchasing Manager Index (PMI) data, prior 48.2, just around the corner, investors will give lesser importance to other catalysts except the trade headlines. However, the US Retail Sales and Michigan Consumer Sentiment data in the later part of the day won’t lose their importance.
The pair keeps it above 21-day exponential moving average (EMA) level around 0.6400 so far since the week-start, which in turn increases the odds of its run-up to 50-day EMA level of 0.6475. Though, a sustained break above 0.6445 becomes necessary for that. In a case where prices dip below 0.6400, month-start high surrounding 0.6320 will flash on sellers’ radar.
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.