NZD/USD fails to cheer the latest trade-positive headlines on New Zealand holiday

  • NZD/USD remains below 10-day SMA despite progress on the US-China trade deal.
  • The USTR suggests nearing agreement on some sections of the trade deal with China.
  • New Zealand (NZ) markets are closed today.

Weekend news concerning the US-China trade deal seems to fail to please the NZD/USD pair buyers on New Zealand holiday as the quote seesaws around 0.6355 amid Monday morning in Asia.

Following another round of trade talks between the top diplomats of the United States (US) and China, via a phone call, the Reuters released news quoting statements from the US Trade Representative’s (USTR) office that says, “They made headway on specific issues and the two sides are close to finalizing some sections of the agreement. Discussions will go on continuously at the deputy level, and the principals will have another call in the near future.”

It was also mentioned in the statement that China will lift a ban on US poultry imports while the US will import Chinese-made cooked poultry and catfish products.

Despite positive developments concerning the major threat to the global economy, the Kiwi pair fails to recover as New Zealand markets are closed in observance of Labor Day.

Investors will now look for the second-tier activity numbers and Good Trade Balance from the US for fresh directions. However, news concerning the US-China trade won’t be ignored if flashed.

Technical Analysis

Unless closing beyond the 10-day Simple Moving Average (SMA) level of 0.6370, expectations of prices declining back to 21-day SMA level of 0.6330 and then to 0.6300 remain on the cards. Should there be an uptick in the quote that crosses 0.6370 mark, 0.6400 and the recent highs close to 0.6440 will be the key to watch.

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