- NZD/USD stays on the back foot amid trade pessimism.
- FOMC minutes offer no surprises.
- New Zealand Credit Card Spending decorates the domestic economic calendar.
White House Deputy Press Secretary Judd Deere’s trade positive comments fail to ease the present skepticism surrounding the US-China phase one deal as the US President Donald Trump “likes what's happening right now.” The US House is debating the Hong Kong Bill and risks escalation of dispute with China. Among all this, NZD/USD extends its earlier losses while taking rounds to 0.6415 at the start of Thursday’s Asian session.
Following the United States' (US) Senate’s passing of Hong Kong Human Rights And Democracy Act, doubts over any trade accord between the US and China rose as the dragon nation severely condemned the Trump administration’s act of interfering their internal issue. Also supporting the move was Reuters’ story suggesting no phase one deal between the global superpowers during this year. Increasing the voice is the latest CNBC news citing four sources who suggest the deal is in trouble because there is not an agreement between the US and China -- even at the stage -- on which tariffs would go and which tariffs would stay.
Even so, Fox News’ Edward Lawrence quoted White House Deputy Press Secretary, Judd Deere, as saying that negotiations are continuing and progress is being made on the text of the phase-one agreement. The diplomat also conveyed President Trump’s saying in China, “China wants to make a deal. The question is: Do I want to make a deal? Because I like what’s happening right now. We’re taking in billions and billions of dollars.”
Minutes of the Federal Open Market Committee’s (FOMC) latest monetary policy meeting offered no surprise as policymakers continue to be happy on the present path while leaving doors wide open for action in case needed.
While trade/political headlines are likely to keep the driver’s seat, the economic calendar has October month Credit Card Spending (YoY) data from New Zealand. The initial signal to consumer spending indicates an improvement to 5.5% versus 4.8% prior. However, the Reserve Bank of New Zealand (RBNZ) officials have been hinting an action in February meeting and the same could be judged on the flow of incoming statistics. From the US, weekly jobless claims, Existing Home Sales and Philadelphia Fed Manufacturing Survey will keep traders busy during the later part of the day.
Technical Analysis
Given the quote’s another pullback from 100-day Exponential Moving Average (EMA), at 0.6426 now, prices could retest a 21-day EMA level of 0.6384 ahead of resting on five-week-old rising support line at 0.6353.
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 retreats toward 1.0850 on renewed USD strength
EUR/USD stays under modest bearish pressure and declined toward 1.0850 in the early European session on Tuesday, pressured by the renewed USD strength. ZEW sentiment survey will be featured in the European economic docket ahead of housing data from the US.
USD/JPY extends rally beyond 150.00 as markets assess BoJ decisions
USD/JPY preserves its bullish momentum after breaking above 150.00 with the 'sell the fact' reaction to the Bank of Japan's decision to end negative interest rates. In the post-meeting press conference, Governor Ueda said they will consider options for easing broadly, including ones used in the past if needed.
Gold price hangs near one-week low, looks to Fed decision on Wednesday for fresh impetus
Gold price struggles to capitalize on the previous day's bounce from the $2,145 region and oscillates in a range during the Asian session on Tuesday. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.