- 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. 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 hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.