NZD/USD seesaws around 3-week low amid mixed bag of data/news

  • NZD/USD retraces losses amid upbeat news concerning US-China poultry trade relations.
  • RBNZ “shadow board” increased skew towards a higher OCR.
  • Holiday in the US will curb market moves amid a light economic calendar.

With the weekend headlines confirming the US-China staying positive at least on poultry business, coupled with the recent optimism surrounding the RBNZ, the NZD/USD pair trades near 0.6335 at the start of the week’s Asian trading on Monday.

The United States (US) is considering to import China’s poultry and is seen recognizing the dragon nation’s inspections, which in turn reduce the trade tension between the world’s two largest economies after concerns grew that the US is stepping back from reversing tariffs that were much-anticipated previously.

Also helping the kiwi could be comments from the New Zealand Institute of Economic Research’s (NZIER) ‘shadow’ monetary policy board that the range of views amongst the NZIER Policy Shadow Board on the appropriate level of the OCR (official cash rate) at the Monetary Policy Statement (MPS) released on Wednesday has widened since September. 

On the economic front, New Zealand’s Electronic Card Retail Sales for October dropped from 0.0% MoM and 2.2% YoY forecasts to -0.6% and 1.6% respectively.

The quote recently has been under pressure among the market’s rush towards the US Dollar (USD) in search of a risk safety. However, major attention will be given to Wednesday’s monetary policy meeting by the Reserve Bank of New Zealand (RBNZ).

Considering the absence of the US traders from markets, due to the Veteran’s Day holiday, sentiments are likely to be a little choppy with investors searching clues for near-term direction.

Technical Analysis

A confluence of 10 and 21-day Exponential Moving Average (EMA) around 0.6360 acts as an immediate upside barrier, a break of which could recall 0.6400 on the chart. On the downside, 0.6300 and 0.6280 keep acting as immediate support for the quote.

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

EUR/USD: 50% Fib capping upside, bearish hammer on D1

EUR/USD's recovery rally from recent lows below 1.10 has stalled around the key Fibo level and a pullback could be in the offing. The pair has repeatedly failed to beat 1.1082.


GBP/USD turns flat on the day near 1.2920

GBP/USD extends its sideways grind above the 1.29 handle in the late American session as the USD largely ignores the FOMC's meeting minutes, which revealed that most policymakers saw October cut was warranted amid global weakness.


USD/JPY bounces-off 50-DMA but lacks follow-through

USD/JPY has bounced up from the 50-day MA support of 108.28. China's Vice Premier Liu He is cautiously optimistic about the prospects of the US-China trade deal. Related markets, however, are not buying Liu He's optimism, keeping the recovery in check. 


Gold: Doji on D1 questions bulls amid mixed trade sentiment

Although the United States’ (US) support for Hong Kong protesters favors the broad risk-off momentum, the mixed response from Chinese diplomats and a bearish candlestick formation question Gold buyers around $1,473 during early Thursday.

Gold News

Hong Kong now a feature in trade negotiations?

The US Senate and House have both passed the Hong Kong Human Rights and Democracy Bill, so now it heads to the desk of US President Trump to either sign or veto it. Sources suggest that the President will sign it into law.

Read more