- Subdued market action allows NZD/USD to stay in its range.
- Trump lowers tensions with China, voices willingness to make a deal.
- US Dollar Index moves sideways below 98 ahead of mid-tier data.
After touching its lowest level in nearly four years at 0.6361 yesterday, the NZD/USD pair rose to 0.64 region but struggled to extend its recovery today. As of writing, the pair was down 0.25% on the day at 0.6375.
With both sides taking a step back in the US-China trade conflict and calling for "calm" negotiations, the trade-sensitive NZD staged a modest rebound on Monday. Speaking at the G7 summit, President Trump said that he was confident that China was sincere about wanting to make a trade deal.
USD steadies after Monday's rebound
However, the fact that easing tensions also allowed the Greenback to gather strength on the back of rising T-bond yields capped the pair's upside. The US Dollar Index, which tracks the greenback's value against a basket of six major currencies, closed the day with strong gains on Monday and is now staying in a consolidation phase below the 98 mark while waiting for the mid-tier macroeconomic data releases, which include the Conference Board Consumer Confidence Index, the Richmond Fed Manufacturing Index, and the Federal Housing Finance Agency's (FHFA) Housing Price Index, from the US.
On the other hand, the data from New Zealand on Monday showed that the trade surplus in July widened to $5.46 billion from $4.98 billion in June on a yearly basis. The next significant data from New Zealand, the ANZ Activity Outlook and Business Confidence, will be released on Thursday.
Technical levels to watch for
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 manages to hold above 200-hour SMA ahead of Eurozone CPI, FOMC
EUR/USD meets with some supply during the Asian session on Tuesday and erodes a part of the previous day's gains amid the emergence of fresh US Dollar buying. Spot prices, however, remain in a familiar range held over the past week or so and currently trade around the 1.0700 round-figure mark.
GBP/USD consolidates its gains above 1.2550, investors await Fed rate decision
GBP/USD consolidates its gains near 1.2560 after flirting with the key 200-day SMA and three-week highs in the 1.2550-1.2560 zone during the early Tuesday. Investors reduce their bets on BoE rate cuts, which support the Cable.
Gold price traders remain on the sidelines ahead of FOMC decision on Wednesday
Gold price remains confined in a narrow range as traders prefer to wait on the sidelines. Reduced Fed rate cut bets revive the USD demand and act as a headwind for the metal. Investors now await the FOMC decision and US macro data before placing directional bets.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
Data fuels China optimism
China's factory activity has expanded for a second consecutive month, marking the best streak in over a year and fueling optimism for the sustainability of the world's second-largest economy's recovery.