- NZD/USD pays a little heed to China’s private activity data but keeps early-Asian gains.
- China’s Caixin Manufacturing PMI follows the footsteps of official activity numbers.
- Risks regain strength on US stimulus hopes, virus/vaccine news.
- RBA, Powell’s testimony and US PMI to offer extra direction.
NZD/USD wavers around 0.7120 even as China’s November month Caixin Manufacturing PMI flashed upbeat results during early Tuesday. However, the kiwi pair cheers the US dollar weakness, as well as risk-on mood, while keeping the upside momentum intact beyond the 0.7000 round-figure.
By crossing 53.5 forecast and 53.6 prior, Caixin Manufacturing PMI tracks official NBS Manufacturing PMI that defied 51.5 expected and 51.4 previous with 52.1 during the previous day.
Read: China Caixin Manufacturing PMI at 54.9 beats 53.5 exp and 53.6 prior, 10-year highs
While the US dollar’s bounce off a fresh low since April 2018 dragged NZD/USD back from a nearly 2.5-year high on Monday, the greenback sellers returned amid hopes of further stimulus from the US. In their prepared remarks for today’s testimonies, Fed Chair Jerome Powell and Treasury Secretary Steve Mnuchin pitched moderating economic recovery while pushing for the much-awaited aid package.
Other than the stimulus hopes, news that Moderna is ready to file for the emergency use of its covid vaccine to the US Food and Drug Administration (FDA) also favor the risks.
That said, S&P 500 Futures and major stocks in Asia-Pacific print gains but NZX 50 remains mildly offered as fewer clues are suggesting additional monetary easing from the RBNZ.
Moving on, the kiwi traders may keep their eyes on the risk catalysts and await monetary policy results from the RBA for immediate direction. However, major attention will be given to the Fed Chair Powell’s testimony and the early-month PMI data from the US, to be published during the later Tuesday.
Technical analysis
NZD/USD sellers are less likely to enter above the 0.7000 threshold, not to for about the December 2018 top near 0.6970. As a result, bulls can keep attacking the mid-2018 peak surrounding 0.7050 while eyeing March 2018 low near 0.7150.
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.