NZD/USD remains on a back foot around 0.6580 ahead of data-flow

  • Doubts over US-China trade deal, sluggish data, and greenback strength weigh on Kiwi.
  • Domestic retail sales and China inflation data in the spotlight for now.

Following another day ruled by bears, the NZD/USD pair continues to be on a back foot near 0.6580 ahead of a slew of domestic and China data at the start of Wednesday’s Asian session.

The kiwi became the worst G10 performer on Tuesday, extending its Monday losses, as overall US Dollar strength (USD) and New Zealand Government’s plan to cut live animal exports dragged the commodity-linked currency down.

Also weighing the sentiment could be the US President Donald Trump’s latest threats to levy fresh tariffs on China if either there is no meeting at G20 or the deal isn’t good to be accepted.

Investors may now focus on today’s data flow comprising May month data for New Zealand credit card retail sales and China’s inflation numbers.

The domestic figure might flash mixed results as the consensus shows a +0.7% growth versus +0.6% previous expansion on MoM and a soft increase of 1.6% from 4.5% prior on a yearly format.

China’s consumer prices index (CPI) could rise to 2.7% from 2.5% (YoY) whereas producer price index (PPI) might decline to 0.6% from 0.9% earlier on a yearly basis.

On the other hand, the US CPI might soften to 1.9% from 2.0% on a yearly format whereas CPI ex-food and energy might increase to 0.2% from 0.1% on a monthly basis.

Other than data, news relating to the US-China trade stalemate should also be given equal importance in order to better predict near term price momentum.

Technical Analysis

The Kiwi pair is yet to slip beneath 0.6560 that holds the gate for the pair’s further declines to 0.6500 and 0.6480. As a result, chances of the quote’s U-turn to 50-day simple moving average (SMA) level around 0.6625 and then an increase to latest high near 0.6680 can’t be ruled out.

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

Editors’ Picks

EUR/USD hits two-month lows amid USD strength

EUR/USD has pared its gains that followed upbeat preliminary PMIs for Germany came out above expectations, pointing to a recovery. The USD is advancing amid fears of the coronavirus.


GBP/USD drops below 1.31 amid USD strength, fails to sustain PMI gains

GBP/USD is trading below  1.31 after hitting a fresh high of 1.3172. The UK Manufacturing PMI beat with 49.8 and Services PMI with 52.9. The USD is gaining ground across the board.


Cryptos: Bears take over and draw a bloody moon

Despite appearances, Bitcoin is the asset with the best risk/benefit ratio. The current falls are adjusted to the ranges of the previous rise. Downward momentum expires in the first half of February.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

USD/JPY drops to two-week lows near 109.30

The USD/JPY pair reversed its direction during the American trading hours as the risk-off atmosphere allowed the JPY to find demand as a safe-haven.