- NZD/USD picks up bids near the highest since late March.
- New Zealand Trade Balance eases, Imports and Export gains in March.
- Fed’s rejection of tapering talks earlier pleased bulls.
- Biden’s ‘Joint Congress’, New Zealand’s ANZ sentiment figures eyed for immediate direction.
NZD/USD remains on the front foot for the second consecutive day, extending the Fed-led gains, as the bulls attack the late March tops of 0.7270, up 0.18% intraday, during the initial Asian session on Thursday. In doing so, the quote takes clues from the upbeat Imports and Exports while ignoring soft Trade Balance.
New Zealand’s headline Trade Balance eased to $33M and $1.69B respectively on MoM and YoY during March versus upwardly revised $201M and $2.38B previous readouts in that order. Further details suggest that the Imports grew beyond $4.3B to $5.65B whereas Exports also rose past $4.5B earlier readings to $5.68B during the stated month.
Although the Trade Balance eased from the previous readings, the upward revision to the priors and strong figures of Imports, as well as Exports, seem to have favored NZD/USD buyers to keep US Federal Reserve-led gains of late.
Fed matched wide market forecasts to keep the current monetary policy unchanged and stay cautiously optimistic. However, the US dollar’s drop after Chairman Jerome Powell’s backed the NZD/USD bulls afterward. Powell rejected tapering talks while saying, “It’s not the right time.”
Elsewhere, the covid woes gain momentum in Asia despite the global help whereas the uneven vaccinations also raise questions over faster economic growth.
Amid these plays, Wall Street benchmarks closed mildly red but the S&P 500 Futures print 0.06% intraday gains by the press time.
Moving on, US President Joe Biden’s first speech to the joint Congress, up for publishing at 01:00 AM GMT, will be important as it will provide details of Biden’s upcoming stimulus plan and the American view over geopolitical issues. Also crucial will be the Q1 Import and Export Price Index data from Australia. Above all, preliminary readings of the US Q1 GDP and risk catalysts hold the driver’s seat.
Read: US Q1 GDP Preview: Eyes on inflation and FOMC as economic recovery gathers steam
Technical analysis
With sustained trading beyond two-week-old support line, around 0.7200, not to forget the confluence of 50-day and 100-day SMA near 0.7155-65, NZD/USD can justify upbeat signals from Momentum, RSI and MACD to cross the late March tops near 0.7270 and eye for the 0.7300 threshold
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.