NZD/USD seesaws around 0.6375 after Business NZ PMI, trade hopes renew


  • NZD/USD reverses most of the RBNZ-led gains.
  • Downbeat data from Australia/China, dovish comments from the RBNZ’s Bascend added weakness.
  • The odds of phase one trade deal between the US and China increase recently.

Following an upbeat print of domestic sentiment index, coupled with the recent positive signals concerning the US-China trade deal, the NZD/USD pair takes rounds to 0.6375 at the start of Friday’s Asian session.

New Zealand’s (NZ) October month Business NZ Purchasing Managers Index (PMI) rose to 52.6 from 48.4 anticipated and prior.

Recent signals from the Politico and the US Department of Agriculture (USDA) indicate receding trade tussle between the US and China. Politico says that the US Department of Commerce is expected to extend the Huawei waiver while the USDA’s Under Secretary Ted McKinney recently said both sides will hold a call on Friday and is giving 50% chance of a successful phase one trade deal.

The risk tone was downbeat earlier as US-China keep being at the loggerheads. Despite China’s green signal to the US poultry, odds of a successful trade deal seems to linger the previous day amid previous concerns for the US farm imports and political tension between both the economies surrounding Taiwan/Hong Kong.

Increasing the downward pressure on Thursday were downbeat economics from major trading partners, namely Australia and China. Disappointment from Australian employment numbers and Chinese data-dump couldn’t help the kiwi extend its earlier run-up based on the RBNZ’s surprise no rate cut.

Additionally, comments from the Reserve Bank of New Zealand’s (RBNZ) Deputy Governor Bascend were also exerting downward pressure on the prices.

With no major data up for publishing on the economic calendar, coupled with expected trade talks, markets’ are likely to keep a close watch on the trade/political headlines for fresh direction.

Technical Analysis

Pair’s failure to cross 100-day Exponential Moving Average (EMA), now at 0.6430, signals another decline to multiple lows surrounding 0.6320.

    1. R3 0.654
    2. R2 0.648
    3. R1 0.6447
  1. PP 0.6387
    1. S1 0.6354
    2. S2 0.6294
    3. S3 0.626

 

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

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 

GBP/USD News

EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 

EUR/USD News

The phantom of fear pierces crypto market foundations

Negative technical indicators are extremely volatile and are approaching a technical rebound. Ethereum has fundamentals in play versus Bitcoin which could be lethal. XRP is not immune to downfalls and adds to the dangerous game of critical supports.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY: Holding on to higher ground but lacking momentum

Positive developments between the US and China keep the mood up. Japanese data mixed, industrial figures continue disappointing. USD/JPY needs to advance beyond 109.72, December monthly high.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures