NZD/USD clings to 0.6535 ahead of second-tier New Zealand data

  • Trade tensions keep worrying Kiwi traders.
  • The PMI and PPI data in the spotlight for now.

NZD/USD trades little changed to 0.6535 at the beginning of the Asian session on Friday as market participants await New Zealand business NZ PMI and PPI data.

The pair lost heavily on Thursday as the US-China trade tensions and pessimism surrounding its largest customer, Australia, weighed on the Kiwi.

The US attacked China’s Huawei from both the sides, namely the White House and the commerce department, as it stopped the Chinese giant from buying Qualcomm chips for its production and also put the company on entity list that requires the US company to get a special license before selling technology to the Huawei. The Chinese company was also banned from selling technologies into the US on national security grounds.

At Australia, increase in April month unemployment rate propelled speculations of a rate cut by the Reserve Bank of Australia (RBA).

Looking forward, April month business NZ purchasing manager index (PMI) and producer price index (PPI) data for the first quarter (Q1) 2019 will be on the lookout for the Kiwi traders. While the PMI figure is expected to rise to 54.5 from 51.9, likely increase in PPI output to 1.3% from 0.8% will confront downbeat forecast for PPI input to 1.4% from 1.6%.

Technical Analysis

Despite falling heavily, the NZD/USD pair is yet to slip beneath 0.6525 in order to revisit 0.6500 round-figure and then drop towards October 2018 bottom near 0.6425 during further south-run.

On the upside, seven-week-old descending trend-line can question the quote’s pullback near 0.6580, a break of which can escalate its recover in the direction to 06600, 0.6630 and 0.6650 consecutive numbers to the north.

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

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.


GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 


Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News