- US dollar’s tumble on Trump’s Fed criticism puts a strong bid under the NZD.
- New Zealand’s (NZ) credit card spendings disappoint, upside stalled?
- Focus shifts to NZ GDT price index and retail sales for fresh impetus.
The NZD/USD pair caught a fresh bid-wave near 0.6625 region in Asia opening trades and from there extended the ongoing upbeat momentum, hitting a fresh nine-day low of 0.6658 last hour.
At the press time, the spot hovers near the multi-day tops, benefiting the most from broad-based US dollar weakness, triggered by Trump’s complaint about the Fed’s rate hike policy. The US dollar index drops -0.35% to 95.57, having hit weekly lows at 95.46 levels.
However, the major stalled it's renewed upmove, as the bulls took a breather following the release of downbeat New Zealand’s credit card spending data, which came in at -1.1% m/m in July versus +2.1% previous.
Moreover, markets remain expectant of the US-China trade talks due later this week, and hence, refrain from creating fresh NZD longs. The Antipodeans are usually seen as the proxies for China.
In the meantime, the focus remains on the NZ GDT price index and retail sales data for fresh trading impetus ahead of the FOMC meeting minutes due tomorrow at 1800 GMT.
NZD/USD Technical Levels
According to Ross Burland, Analyst at FXStreet, “There is an argument for the upside while indicators have resurfaced from out of oversold territory and bulls can target resistance at 0.6670. Indeed, the 10-D SMA has been breached and closes above there open up the possibility of a stretch towards 0.6860 if 21-D SMA can be cleared. However, on the downside, 0.6510/50 guards a run to the 0.6470s and below there, 0.6240 remains as a big level that protecting the double bottom lows at 0.5910 (2004 and 2006 levels).”
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