- NZD/USD stays little changed in search of fresh catalysts.
- Optimism surrounding the US-China trade deal favors the Kiwi to remain above 21-day EMA.
- The economic calendar signals another dull-day, trade/political headlines will be in the spotlight.
With fewer catalysts in the radar, NZD/USD fails to portray much momentum while taking rounds to 0.6425 at the start of Wednesday’s Asian session.
Following an initial decline on Tuesday, mainly due to China’s disappointing PPI, the Kiwi pair recovered some of the losses on the US Dollar (USD) weakness to close the day with almost no gains/losses.
China’s upbeat reading of Consumer Price Index (CPI), mainly due to a spike in food prices as per the Australia and New Zealand Banking Group (ANZ), couldn’t supersede sluggish Producer Price Index (PPI) and offered another worrisome sign for the world’s largest commodity user.
On the trade front, China’s Premier Li said that he hopes that trade talks with the US will make progress. Though, no new signs were flashed from the US side after President Donald Trump fired his National Security Adviser John Bolton. Mr. Bolton was considered having a tough stand against the Middle East and North Korea while often heard spreading doubts about the US-China trade relations.
Moving on, the economic calendar is light in Asian, except migration data at home and China’s M2 Money Supply and New Home Loans. As a result, traders will keep following trade/political headlines for fresh impulse. During the US session, monthly reading of Producer Price Index (PPI) might entertain market players.
Technical Analysis
As far as the prices are above the 21-day exponential moving average (EMA) level of 0.6408, 50-day EMA, at 0.6480, is a live possibility. However, pair’s rise beyond that depends upon the strength of the momentum. On the contrary, a downside break of 21-day EMA could fetch prices to last week's top surrounding 0.6330.
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.