NZD/USD fluctuates below 0.64 as markets wait for fresh US-China trade developments

White House adviser Kudlow says they are close to finalising phase-one of trade deal.
Business NZ PMI shows improvement in business activity in October.
US Dollar Index trades above 98 ahead of key data releases.

Eren Sengezer FXStreet

Following Wednesday's rally that was fueled by the Reserve Bank of New Zealand's decision to keep the policy rate unchanged at 1%, the NZD/USD pair staged a deep correction on Thursday before going into a consolidation phase on Friday. As of writing, the pair was virtually unchanged on a daily basis at 0.6380.

Trade headlines drive the pair's action

The dismal market mood on Thursday weighed on the risk-sensitive NZD as investors continued to assess US President Trump's comments revealing his intention to raise tariffs if they were to fail to reach a trade deal.

However, the Business NZ's Purchasing Managers' Index (PMI) improved to 52.6 in October from 48.4 in September and beat the market expectation of 48.4 to help the kiwi stay resilient against its rivals. Moreover, in the early trading hours of the Asian session on Friday, White House economic adviser Larry Kudlow noted that they were very close to concluding the phase-one of the trade deal with China to provide additional support to the NZD.

In the second half of the day, the NY Fed's Empire State Manufacturing Survey and Retail Sales data from the United States will be looked upon for fresh catalysts. Ahead of these data, the US Dollar Index is posting small daily gains near the 98.20 mark.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6377
Today Daily Change	0.0007
Today Daily Change %	0.11
Today daily open	0.637

Trends
Daily SMA20	0.638
Daily SMA50	0.6345
Daily SMA100	0.6444
Daily SMA200	0.6571

Levels
Previous Daily High	0.642
Previous Daily Low	0.6359
Previous Weekly High	0.6466
Previous Weekly Low	0.6321
Previous Monthly High	0.6437
Previous Monthly Low	0.6204
Daily Fibonacci 38.2%	0.6382
Daily Fibonacci 61.8%	0.6397
Daily Pivot Point S1	0.6346
Daily Pivot Point S2	0.6322
Daily Pivot Point S3	0.6285
Daily Pivot Point R1	0.6407
Daily Pivot Point R2	0.6444
Daily Pivot Point R3	0.6468

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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