NZD/USD: Fresh run-up eyes June 2018 top on NZ Treasury comments, China Industrial Profits

  • NZD/USD picks up bids after recently positive NZ indicators.
  • New Zealand (NZ) Treasury highlights an upside risk to economic growth backed by recent jump in retail sales.
  • China’s Industrial Profits grew 28.2% YoY in October.
  • Risk dwindle amid mixed sentiment concerning virus vaccine and Sino-American, Aussie-China tension.

NZD/USD rises to 0.7011 in the latest run-up to trim the early Friday’s losses. Backing the kiwi bulls are optimistic comments from the NZ Treasury and upbeat industrial profits data from China. In doing so, the quote ignores challenges to the risk and its largest customer Australia, mainly due to the coronavirus (COVID-19) vaccine update and China.

NZ Treasury’s weekly report cited upside risk to the GDP growth forecasts based on the latest jump in retail sales data. The report also mentioned, “Card spending has shown a steady recovery in November after some volatility, and the number of people receiving income support continues to fall.”

Elsewhere, China’s October month Industrial Profits grew 28.2% YoY versus 10.1% prior. The year-to-date figures suggest more optimism by rising to 0.7% YoY, the first positive figure in 2020.

On the negative side, China eyes anti-dumping duties on Aussie wine while chatters over Beijing stopping the Australian coal ships also weigh on the risks. Further, the Sino-American tension also intensified recently after the US levies fresh sanctions on Chinese companies over their links to the Iran missile program. Also, Chinese media’s indirect warning to US President-election Joe Biden over Taiwan heavy the risks.

It should be noted that US President Donald Trump’s promise to deliver the vaccine by next week and the UK’s push for AstraZeneca’s vaccine approval tried to placate the market bears.

Amid these plays, S&P 500 Futures drop 0.20% whereas stocks in Asia-Pacific trade mixed by press time.

Moving on, risk catalysts can keep the driver’s seat amid a light calendar.

Technical analysis

The mid-2018 top surrounding 0.7050 holds the key to the further upside by NZD/USD.

Additional important levels

Today last price 0.7011
Today Daily Change -3 pips
Today Daily Change % -0.04%
Today daily open 0.7014
Daily SMA20 0.6845
Daily SMA50 0.6714
Daily SMA100 0.6673
Daily SMA200 0.643
Previous Daily High 0.7015
Previous Daily Low 0.6992
Previous Weekly High 0.6952
Previous Weekly Low 0.6841
Previous Monthly High 0.6726
Previous Monthly Low 0.6546
Daily Fibonacci 38.2% 0.7006
Daily Fibonacci 61.8% 0.7001
Daily Pivot Point S1 0.6999
Daily Pivot Point S2 0.6984
Daily Pivot Point S3 0.6976
Daily Pivot Point R1 0.7022
Daily Pivot Point R2 0.703
Daily Pivot Point R3 0.7045



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD recaptures 0.7700 amid Risk-on mood, upbeat Aussie data

AUD/USD remains strongly bid above 0.7700 after Monday’s downbeat performance. The aussie benefits from upbeat Australian housing data and risk-on mood. Incoming Treasury Secretary Janet Yellen’s indirect support to Biden’s stimulus favors the risk-takers.


EUR/USD:Falling wedge on 4H tests bearish impulse below 1.2100

EUR/USD portrays choppy trading moves between 1.2075 and 1.2080 during Tuesday’s Asian session. Bullish chart pattern, recovering MACD keep buyers hopeful. Early February lows, 61.8% Fibonacci retracement add to the downside filters.


Gold: All eyes on the greenback and US yields

Gold prices are attempting to recover as te DXY stalls in its bullish correction. The dollar could still be a catalyst for a deeper positioning squeeze in the yellow metal. The US dollar strengthened for a third consecutive day on Monday.

Gold news

BTC/USD: Its a make or break at 36170

BTC/USD is trending up again in the 30 minutes time frame; the price structure has changed since the weekend selloff with higher highs and higher lows. Prices fell below the crucial point at 36170 in yesterday's session but bounced back.

Read more

US Dollar Index: Immediately to the upside comes 91.00

DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.

US Dollar Index News