NZD/USD remains firm around 0.6660 ahead of New Zealand, China data


  • NZD/USD holds its strength as Fed policymakers keep their easing bias intact despite upbeat inflation numbers from the US.
  • The US-China trade war continues to look grim.
  • New Zealand Business NZ PMI, China Trade Balance are in the spotlight for now.

With the slew of dovish comments from the US Federal Reserve policymakers and the US President Donald Trump’s tweets raising further roadblocks for the US-China trade deal, the NZD/USD pair remains firm around 0.6660 at the start of the Asian session on Friday.

While the Fed Chair Jerome Powell reiterated his bearish wordings on the second day of Testimony, notable Fed policymakers like New York President John Williams and President of the Federal Reserve's Minneapolis branch Neel Kashkari added salvo to the US central bank’s dovish sentiment. However, markets seem to have priced for the show after Wednesday’s reaction.

Adding to the doubts surrounding less reaction to the Fedspeak could be upbeat inflation numbers from the US.

Exerting pressure on the momentum was the US President Donald Trump’s tweets that confirmed the latest speculations that China is stepping back from the US farm imports.

Moving on, June month New Zealand Business NZ Purchasing Managers’ Index (PMI) and China’s trade numbers will be in the spotlight of traders’ attention while keeping an eye over the trade-related news/headlines.

The New Zealand Business NZ PMI is expected to recover from 50.2 to 53.1 whereas China’s headline Trade Balance number could improve to $44.65 billion from $41.65 billion with likely upbeat imports to -4.5% from -8.5% and an expected drop in exports to -2.0% versus 1.1% previous readouts.

With New Zealand data just around the corner, TD Securities says:

With May BusinessNZ Manufacturing PMI falling to its lowest reading since Dec 2012 and the production component contracting sharply, the market will look to the June print for confirmation that manufacturing activity stalled in Q2.

Technical Analysis

Sellers seek a downside break of the 21-day exponential moving average (21-D EMA), at 0.6636 now, in order to aim for 0.6600 and latest low surrounding 0.6567 whereas bulls keep targeting 200-D EMA level of 0.6714 during further upside.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Stuck in a range, the odds of an aggressive Fed rate cut drop

EUR/USD continues to trade a narrow range amid falling odds of an aggressive easing by the US Federal Reserve (Fed) later this month. The ECB is widely expected to keep rates unchanged, but send out a strong dovish message later this week

EUR/USD News

GBP/USD remains modestly flat as Brexit optimism confronts UK-Iran tension

While optimism surrounding the Brexit helped the GBP/USD pair to start the week on a positive note, geopolitical tensions between the UK and Iran tamed the quote’s upside as it trades near 1.2500 ahead of the London open. 

GBP/USD News

USD/JPY consolidates gains below 108.00 amid risk-off in Asian equities

Having failed to sustain the early gains above the 108 handle, USD/JPY consolidates in a tight range just below the last amid risk-off action in the Asian equities and Abe's victory. Escalating Gulf tensions and a likely smaller Fed rate cut weigh down on the sentiment. 

USD/JPY News

Gold: Bounces off 23.6% Fibo. towards $1436.50/37 supply zone

Gold is again being bought as it reverses from 23.6% Fibonacci retracement of June-July advances to $1,427 by early Monday. The yellow metal now runs towards $1,436.50/37 horizontal resistance comprising early-month tops.

Gold News

Weekly outlook: UK parliament, ECB meeting, germany and US data

The result of conservative party’s election of UK parliament will have been announced by Tuesday night. Boris Johnson is expected to be the new PM. The European central bank meeting on Thursday. The interest rate is expected to maintain at zero percent.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •