NZD/USD seesaws around 0.6400 amid mixed trade signals from US/China
- NZD/USD halts the previous recovery as latest headlines from the US and China doubt latest risk-on sentiment.
- Markets remained on the front foot mainly due to the absence of further trade war.
- A lack of data could keep traders focusing on the trade news.
Despite recovering most of its losses from the fresh multi-year lows on the previous-day, the NZD/USD fails to extend the run-up as it trades near 0.6400 at the start of Tuesday’s Asian session.
Media reports that the US President Donald Trump didn’t mean to formally push the US-based organization to exit China, irrespective of his Friday’s tweets, and Chinese Vice Premier Liu He’s comments showing readiness to have a calm trade negotiations with the US initially triggered the risk-on and pulled the Kiwi back from its multi-year low on early Monday.
The sentiment carried after the US President said Chinese authorities called him and showed readiness to for further talks.
Elsewhere, Japan also offered signal a trade deal with the US while promising more agricultural products’ imports without the US offering anything in return. Further, France also signed an agreement to agree on removing the IT barriers for US tech companies.
Hence, receding fears of an additional trade war triggered risk recovery on the previous-day. However, comments from China’s Global Time’s Chief Editor Hu Xijin doubting President Trump’s claim of Chinese call and showing China’s readiness to confront the US pressure questioned further improvement in market sentiment.
While the US-China headlines will keep entertaining traders, the US Consumer Confidence and Richmond Fed Manufacturing Index numbers will be the key to follow for fresh impulse.
Technical Analysis
The 10 and 21-day simple moving averages (SMA), around 0.6410 and 0.6463 respectively, limit pair’s immediate upside ahead of highlighting June month low of 0.6487. Alternatively, 0.6360 and 0.6341 can entertain sellers before pushing them to September 2015 bottoms surrounding 0.6240.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
