NZD/USD clings to 0.6500 despite downbeat New Zealand consumer survey data


  • Fails to benefit from weak US data.
  • Shows little reaction to 3-quarter low New Zealand consumer survey.
  • Fewer data on hand but details/events at the largest customers can entertain traders.

Having attempted a little successful comeback, the NZD/USD pair clings to 0.6500 despite three-quarter low New Zealand consumer survey results at the start of Tuesday’s Asian session.

The Kiwi tried taking advantage of sluggish manufacturing and housing data from the US on Monday. However, looming concerns over the US-China trade war and comparative fundamental strength of the US Dollar (USD) maintained downside pressure on the pair.

The second quarter (Q2) 2019 data from New Zealand’s Westpac consumer survey dropped to 103.5 versus 103.8 prior, lowest since September 2018. However, traders showed little reaction to the sentiment data.

While the local economic calendar doesn’t have anything to direct immediate moves, Australia’s first quarter house price index, RBA meeting minutes and China’s May month house price index could entertain short-term traders. Following that, US housing market stats will also garnet investor attention.

China’s house price index rose 10.7% during April while its counterpart from Australia’s contracted -2.4% during last quarter of 2018 and is likely to improve to -1.6% on a QoQ basis this time. The US building permits for May could remain unchanged at downwardly revised 1.290 million whereas housing starts might increase to 1.240 million against 1.235 million earlier.

Minutes of the latest Reserve Bank of Australia (RBA) meeting are less likely to offer any more signals for future rate cuts but will be observed to gauge policymakers’ tone while announcing the latest rate alteration.

Technical Analysis

Repeated failures to break the yearly low of 0.6480 continues to highlight chances of a pullback to 0.6530 a break of which can escalate the recovery towards May 27 high of 0.6560. Though, a downside break of 0.6480 might not refrain from dragging the quote to October 2018 lows near 0.6460 prior to shifting market focus to the year 2018 bottom of 0.6430.

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD looks weak after rejection above 1.1100

EUR/USD is sidelined near 1.1080 ahead of the London open. Single currency failed to keep gains above 1.11 on Tuesday despite upbeat German data. The sentiment is quite bearish and a deeper drop to the 100-day average could be in the offing.

EUR/USD News

GBP/USD modestly flat around 1.3050 amid Brexit concerns, USD strength

GBP/USD holds onto the recovery despite looming Brexit uncertainty and broad-based US dollar strength. EU is likely to offer a tough Brexit deal that increases the odds of harsh departure.

GBP/USD News

Bank of Canada Rate Decision Preview: Rewards of Economic patience

Bank of Canada is forecast to leave the overnight rate at 1.75% where is has been since it was increased 25 basis points on October 24th 2018.   The bank makes rate policy decisions at eight fixed date meeting a year. The next is March 4th.

Read more

Gold remains under pressure around $1,551 as US dollar keeps the gains

Gold bounces off the intra-day low of $1,550.40, flashed a few minutes back, to $1,551.30 by the press time of the pre-European session on Wednesday. In doing so, the safe-haven ignores the geopolitical risks emanating from China.

Gold News

USD/JPY rises above 110.00, potential head-and-shoulders on 1H

Risk reset in stocks is boding well for USD/JPY.  The pair may be forming a head-and-shoulders pattern on the hourly chart. The bulls are not out of the woods yet and a break above 110.12 is needed to invalidate lower highs setup on the hourly chart.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures