- NZD/USD takes the bids after a big positive beat of the NZ Retail Sales.
- New Zealand data crossed downbeat forecasts amid recovery from coronavirus-led activity restrictions in Q3.
- Trading sentiment struggles amid fears of a brake to the Fed’s emergency lending programs, covid resurgence.
- November month PMIs become the key data, risk catalysts shouldn’t be ignored.
NZD/USD rises to 0.6930 during the initial hour of Monday’s Asian trading. The pair began the week on a back-foot while printing a 20-pips gap-down opening to 0.6918. However, the recently flashed New Zealand Retail Sales for the third quarter (Q3) helped the quote to fill the difference from Friday’s closing near 0.6940.
NZ Retail Sales favors RBNZ’s bullish bias…
New Zealand (NZ) Retail Sales for Q3 overcome the previous quarter’s -14.6% QoQ contraction while rising 28.00%. Further, the Core Retail Sales also jumped above -13.7% previous declines to 24.1% QoQ.
The data offered additional positives to the Reserve Bank of New Zealand (RBNZ) policymakers who have been bullish off-late. Although the RBNZ Governor Adrian Orr cited fears of the global coronavirus (COVID-19) resurgence in his latest speech, the central banker turned down the negative rates while praising the Pacific economy for its performance to tame the pandemic at home.
Elsewhere, global risks remain depressed amid fears that the US Federal Reserve will have a limited capacity to battle the virus. US Treasury Secretary Steve Mnuchin recently recalled the $500 billion of funds with the Fed while indicating the term expiry. This triggered fears that the US central bank will be left with fewer resources and pushed Fed Chair Jerome Powell and company to resist the demands.
Additionally, the COVID-19 outbreak is worsening in the US and Europe. Wall Street Journal cites a reduction in the daily cases from the record high numbers but a sustained surge in the hospitalization keeps the deadly virus as the major fears for Americans.
Virus vaccines and treatments are battling the bears. Recently Regeneron’s Antibody treatment got a go from the US Food and Drug Administration (FDA) for emergency use while Pfizer is up for the UK’s greenback by this weekend, as per the Telegraph. Also on the positive side could be the US President-elect Joe Biden’s firming up the grip on the American leadership.
Even so, global traders will pay close attention to the November month’s activity numbers for fresh impulse while also keeping an eye over the risk catalysts mentioned above.
Unless declining back below the 0.6800 mark, comprising multiple highs flashed during the mid-2019 and September 2020, bulls are likely to keep the reins. In doing so, the 0.7000 psychological magnet can become their immediate target. However, a downside break of 10-day SMA, currently near 0.6880 can trigger intraday selling.
Additional important levels
|Today last price||0.693|
|Today Daily Change||-9 pips|
|Today Daily Change %||-0.13%|
|Today daily open||0.6939|
|Previous Daily High||0.6952|
|Previous Daily Low||0.6904|
|Previous Weekly High||0.6952|
|Previous Weekly Low||0.6841|
|Previous Monthly High||0.6726|
|Previous Monthly Low||0.6546|
|Daily Fibonacci 38.2%||0.6934|
|Daily Fibonacci 61.8%||0.6923|
|Daily Pivot Point S1||0.6911|
|Daily Pivot Point S2||0.6884|
|Daily Pivot Point S3||0.6863|
|Daily Pivot Point R1||0.696|
|Daily Pivot Point R2||0.698|
|Daily Pivot Point R3||0.7008|
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.