NZD/USD clings to 0.6500 in search of fresh clues

  • US Dollar (USD) strength continues to derail commodity-linked currencies.
  • Trade woes and expected rate cut from RBA add further weakness.
  • Lack of data could keep highlighting qualitative catalysts for fresh impulse.

Having witnessed heavy downpour during last-week, the NZD/USD pair trades modestly flat near 0.6500 at the start of Monday’s Asian session.

The Kiwi pair, alike other majors except for the Japanese Yen (JPY), couldn’t withstand the overall strength of the US Dollar (USD) amid upbeat retail sales and industrial production numbers.

Adding to the downturn could also be pessimism surrounding its largest customer Australia after higher than expected unemployment rate signals Reserve Bank of Australia’s (RBA) another rate cut.

The US President Donald Trump had been threatening to levy fresh tariffs on China if his Chinese counterpart Xi Jinping fails to meet him at the upcoming G20 summit on June 28-29. However, Chinese media shows little reaction to it and continues to criticize the Trump administration’s trade protectionism.

While Wednesday’s FOMC and Thursday’s New Zealand GDP are likely to grab major market attention, developments surrounding the US-China trade could offer intermediate moves to the traders.

Technical Analysis

Despite slipping beneath the late-May low, around 0.6500, the quote is yet to break the year 2019 low of 0.6480 that holds the gate for the pair’s downturn to October 2018 lows near 0.6430. As a result, chances of the pair’s pullback to 0.6530 and then to May 27 high of 0.6560 can’t be ruled out.

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 


GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.


XAU/USD inches closer to multi-year highs, trades around $1,810

The XAU/USD pair registered its highest weekly close since September of 2011 at $1,799 on Friday and continued to push higher on Monday.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News