- The greenback weakness paid off to the Kiwi without much to cheer at home.
- New Zealand trade balance is in the spotlight with the US-China trade spat being on the radar.
With the US Dollar (USD) weakness helping the Kiwi to register a bounce off-late, the NZD/USD pair trades near 0.6520 at the start of the Asian session on Friday.
The US-China trade tensions grab the spotlight as neither party wants to give up on their demands. Nomura gives 65% probabilities that the US will levy tariffs on all Chinese goods by this year-end.
In addition to the trade war with China, sluggish new home sales and purchasing manager index (PMI) data also weighed on the US Dollar (USD) on Thursday. New home sales fell 6.9% while manufacturing PMI revisited September 2009 levels.
There were fewer positives from the domestic end of New Zealand.
Recent comments from the US President Donald Trump show his positive outlook towards meeting the Chinese leader Xi Jinping on the sidelines G20. Though, Mr. Trump doesn’t want to give up on his MAGA (make America great again) dream and is firm to keep Huawei on the check.
Immediate attention of the Kiwi traders will be on April month trade balance data, to be out at 22:45 GMT. Forecasts suggest $-5.465 billion trade balance (YoY) versus $-5.620 billion prior. Further, exports may flash $5.35 billion against $5.70 billion earlier whereas imports can rise to $4.90 billion compared to $4.77 billion earlier.
Ahead of the release, TD Securities said, “Apr trade balance is seasonally a surplus month, but follows a blockbuster +$NZ922m for March, led by record exports. We pencil in a surplus of +$NZ700m (mkt $NZ450m) as exports remain elevated ($NZ5.5b) but fuel imports ($NZ4.8b) eat into the surplus somewhat.”
Technical Analysis
A downward sloping trend-line since March 26 at 0.6530 gains immediate attention as a break of which could open the door for the quote’s extended recovery to 0.6580 and then to 0.6600 round-figure.
In a case of further weakness beneath 0.6480 support, October 2018 low near 0.6425 should gain bears’ attention.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.