NZD/USD nears 17-week high, ignores trade tantrum, downbeat NZ data


  • NZD/USD awaits more clues after being the winner among G10 currencies the previous day.
  • The US President Donald Trump stays ready to extend the trade talks but prefers a good deal from China.
  • New Zealand’s ANZ Commodity Price Index, trade news keep the driver’s seat.

NZD/USD seesaws around 0.6520, the highest since August 07, at the start of Wednesday’s Asian session. The pair have recently been the Bull’s favorite despite on-going trade war concerns and soft data at home.

The recent fortnight release of New Zealand’s (NZ) GDT Price Index slipped below +0.5% forecast and +1.7% prior to -0.5%. Details suggest the prices of Whole Milk Powder (WMP) seem to lose momentum while rising at 0.1%. The Australia and New Zealand Banking Group (ANZ) cites demand from China to be the reason behind it as it says, “WMP prices were weaker than expected, possibly due to reduced demand from China now that buying to supply the new tariff window in the new year has closed.”

The kiwi pair also defied the broad market theme, i.e. a possible trade war between the United States (US) and China, while being at the top of G10 performers. As per the latest updates, the US Trade Secretary Wilbur Ross keeps signaling that President Trump won’t sign a deal unless it's good. Further, the US Vice President (VP) Mike Pence also crossed wires, via Reuters, while saying that the US President Trump will not allow China to take advantages of United States.

Furthermore, the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr and Deputy Governor Geoff Bascand also spoke off-late. While the Governor praises the economic performance as compared to the rest of the world, RBNZ’s Bascand sees interest rates being low for some time.

While everything is against the moves, the Kiwi still rises and the reason could be found in the Commodity Futures Trading Commission’s (CFTC) positioning data for November 20 to 26. “CFTC positioning data continues to display a reluctance in the market to offload NZD shorts. In fact, in the week of 20-26 November, speculators added net shorts and pushed NZD net short positioning back above 50% of open interest. In line with this view, we think that the large speculative short positions on NZD could help to exacerbate the upside move in the currency as short positions are squeezed,” says ING.

Moving on, investors can keep eyes on trade headlines for intermediate market moves whereas ANZ Commodity Price Index for November, expected 1.6% versus 2.7% prior, could also direct the quote.

Technical Analysis

With the 14-day Relative Strength Index (RSI) flashing overbought conditions, sellers may look for entry if the quote slips below 200-day Exponential Moving Average (EMA) level of 0.6515. In doing so, November high near 0.6466 will become their immediate target. On the upside, August month top surrounding 0.6590 and 0.6600 round-figure remain on the bull’s radar.

additional important levels

Overview
Today last price 0.6519
Today Daily Change 13 pips
Today Daily Change % 0.20%
Today daily open 0.6506
 
Trends
Daily SMA20 0.6399
Daily SMA50 0.636
Daily SMA100 0.6414
Daily SMA200 0.6547
 
Levels
Previous Daily High 0.6512
Previous Daily Low 0.6424
Previous Weekly High 0.6439
Previous Weekly Low 0.6394
Previous Monthly High 0.6466
Previous Monthly Low 0.6321
Daily Fibonacci 38.2% 0.6478
Daily Fibonacci 61.8% 0.6458
Daily Pivot Point S1 0.645
Daily Pivot Point S2 0.6393
Daily Pivot Point S3 0.6362
Daily Pivot Point R1 0.6537
Daily Pivot Point R2 0.6568
Daily Pivot Point R3 0.6625

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures