- NZD/USD holds on to weakness amid trade negative sentiment, stronger USD.
- New Zealand trade data has been mixed.
- The light economic calendar will keep market focused on the US-China trade news.
With New Zealand’s September month trade data flashing mixed signals on MoM and YoY basis, NZD/USD stays on the back foot while taking rounds to 0.6400 during the early Asian session on Wednesday.
As per the communiqué from the Statistics New Zealand, September month Trade Balance grew -5.21B versus $-5.49B expected YoY figure while MoM data suggests a weaker print of $-1,242M versus $-1,112M forecast. Further, Imports stood unchanged at upwardly revised $5.71B whereas Exports increased to $4.47B against $4.08B (revised from $4.13B).
Prices have been under pressure off-late as trade news from the United States (US) has been downbeat. As per the White House Economic Adviser Larry Kudlow, unresolved issues in phase one talks of the US-China trade deal will create problems in the second round of negotiations. Also, the recent notice from the US Department of Commerce concerning Aluminum wire and cables from China adds to the doubts of a successful deal between the two global superpowers.
Kiwi buyers were also taken aback by the US Dollar (USD) strength supported by the upbeat manufacturing index and a mild risk-off.
With no major data up for publishing, traders will continue taking clues from the US-China trade front for fresh impulse.
Technical Analysis
Unless breaking a 100-day Exponential Moving Average (EMA) level of 0.6450, prices can keep being liable to revisit early-month high surrounding 0.6355.
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