NZD/USD: Offered below 0.6700 amid mixed catalysts
- NZD/USD respects downbeat New Zealand data to stretch pullback from 0.6668.
- New Zealand’s ANZ Business Confidence, Activity Outlook marked dismal figures for July.
- US dollar bounces off two-year low during the post-Fed consolidation.
- Aussie trade numbers, Building Permits and US GDP decorate Thursday’s calendar.
NZD/USD fails to extend the previous day’s upside momentum while taking offers near 0.6660, down 0.10% on a day, during Thursday’s Asian session. The kiwi pair’s latest drop takes clues from the downbeat readings of the Australia and New Zealand Banking Group’s (ANZ) sentiment gauges. Also weighing on the quote is the US dollar’s pullback from the lowest since June 2018.
ANZ Business Confidence slipped below -29.8 forecast to -31.8 whereas Activity Outlook slumped below -6.8% market consensus to -8.9% for July. Earlier during the day, New Zealand Building Permits grew beyond 0.0% expected to 0.5% in June.
The US dollar index (DXY) retraces from Wednesday’s low of 93.17, also the lowest since June 14, 2018, to 93.40, up 0.15% on a day, by the press time. The greenback’s gauge versus the major currencies recently gained bids as traders seem to cover their short positions piled after the previous day’s bearish message from the US Federal Reserve (Fed).
Additionally, worsening coronavirus (COVID-19) conditions in New Zealand’s largest customer Australia also negatively affects the New Zealand dollar (NZD). As per the latest update, Victoria marks the record 723 virus cases with 13 deaths on Wednesday. The Pacific major witnessed Queensland’s ban of entry of Victorians from Saturday on the previous day.
Furthermore, the US push to recall domestic firms from Asia highlights the Sino-American tussle and adds weakness onto the commodity-linked currency pair.
Against this backdrop, US 10-year Treasury yields linger below 0.58% with S&P 500 Futures marking mild losses by the press time. At home, New Zealand’s NZX 50 gain 0.83% while taking tops from Japan’s Nikkei 225 and Australia’s ASX 200.
Looking forward, Aussie's second-tier data may entertain the pair traders ahead of the key US GDP figures, expected -35.1% versus -5.0%.
Technical analysis
Only if the pair slips below the one-month-old ascending trend line, currently around 0.6630, sellers can aim for July 09 top near 0.6600. Until then, 0.6700 remains on the bulls’ radars.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
