NZD/USD: Sellers attack 0.7200 following Aussie, China data
- NZD/USD refreshes intraday low, stays pressured for third day after data from Australia and China.
- Aussie trade figures came in weaker for May, Retail Sales matches initial forecasts.
- China Caixin Services PMI dropped to 55.1, Composite PMI eased to 53.8, RBNZ officials remain cautiously optimistic.
- US data, risk headlines may entertain traders amid a likely sluggish day.
NZD/USD takes offers around 0.7225, down 0.20% intraday, following the downside signals from macros and US dollar rebound during the early Thursday. In doing so the kiwi pair drops for the fourth consecutive day even as markets struggle for direction.
The latest fall in the quote could be traced to Australia’s downbeat Trade Balance and Retail Sales for April, not to forget China’s weaker-than-previous figures of Caixin Services PMI and Composite PMI numbers for May.
Earlier in the day, the New Zealand government released a 10-month financial statement marking a lesser than expected deficit of 3.57 billion New Zealand dollars (NZD). Though, the news couldn’t recall the NZD/USD buyers as traders struggle for clear direction ahead of Friday’s US Nonfarm Payrolls (NFP), not to forget today’s US ADP Employment Change and ISM Services PMI.
It’s worth noting that the Reserve Bank of New Zealand (RBNZ) officials, namely Governor Adrian Orr and Deputy Governor Geoff Bascand, remain cautious towards the much-anticipated rate hike action amid mixed catalysts at home and abroad.
Also contributing to the NZD/USD weakness could be the US dollar index (DXY) rebound to 89.96, up 0.06% on a day, backed by weaker US Treasury yields and sluggish stock futures. However, the bears are challenged by the improving odds of the US-China trade deal and Iran’s joining back of the nuclear treaty.
Moving on, NZD/USD traders will keep their eyes on the risk catalysts for fresh impulse and the US data may offer additional directives. Though, the market moves may remain choppy before tomorrow’s crucial US jobs report.
Technical analysis
A downside break of 21-day SMA around 0.7235, not to forget the previous week’s pullback from 0.7317, directs NZD/USD prices to an ascending support line from March 31, around 0.7200 by the press time.
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.
