- NZD/USD fails to carry the previous recovery amid trade tussle, comments from Fed’s Daly and lack of major clues.
- New Zealand GDT Price Index grew less than prior, WMP rose.
- Traders remain on sidelines ahead of the key FOMC minutes, Jackson Hole Symposium.
Following recent comments from the US President and the Fed’s Daly, NZD/USD refrains from extending the previous recovery as it takes the rounds to 0.6415 at the start of Wednesday’s Asian trading session.
The US President Donald Trump reiterated his previous statement of not ready to do a deal with China while adding that someone had to 'take China on' whether it was good or bad for the US in the near-term.
Elsewhere, President of the Federal Reserve Bank of San Francisco Mary C. Daly said that she doesn’t think the US is headed for recession while also praising employment status of the world’s largest economy.
On the other hand, New Zealand’s Global Dairy Trade (GDT) Price Index declines lesser than -2.6% prior to -0.2% with the whole milk powder (WMP) up 2.1% to US$3100/t.
While New Zealand’s July month Credit Card Spending becomes the only second-tier reading to be aware of, investors are eagerly waiting for the Fed’s July month’s meeting minutes to get the near-term market directions. Markets will be particularly interested in details that led the US central bank towards its first rate cut in more than a decade.
Following the FOMC, the start of the annual Jackson Hole Symposium will also be the key as global central bankers will appear for their speech on “Challenges for Monetary Policy”.
Technical Analysis
Prices keep flirting with 0.6400 that holds the key to 0.6377 and the year 2016 bottom close to 0.6348. Alternatively, an eight-day-old descending trend-line around 0.6425 can keep limiting near-term upside, a break of which can trigger fresh recovery towards 0.6470/75 whereas 0.6500 can please buyers then after.
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