NZD/USD stays on the back foot amid trade-negative headlines


  • NZD/USD is in negative territory after three consecutive daily losses.
  • Comments from the US Treasury Secretary tame recent US-China trade optimism.
  • The US President Donald Trump earlier touted the deal.

With growing uncertainties surrounding the US-China trade deal, the NZD/USD remains under pressure for the fourth consecutive day while taking rounds to 0.6280 amid early Asian morning on Thursday.

The quote seems to have taken a jolt from the recent comments by the United States’ (US) Treasury Secretary Steve Mnuchin. Mr. Treasury Secretary crossed President Trump’s earlier comments that the deal is being prepped while saying that “as of now there is no invitation from China for more trade talks in Beijing.” It was also said that the upcoming tariffs on Chinese goods, to be activated on December 15, haven’t been discussed on the “Phase 1” deal and the same will be talked in the next round, which in turn raises prospects of another tensed negotiations between the global superpowers.

The trade deal optimism faded earlier on Wednesday after the US House of Representatives passed a bill concerning Hong Kong that was highly criticized by the Chinese part. However, President Trump’s upbeat comments helped restore some confidence before Mr. Mnuchin poured cold water on it.

It should also be noted that dovish comments from the Reserve Bank of New Zealand (RBNZ) official countered optimism spread through better than forecast New Zealand inflation data on Wednesday.

The US Dollar (USD) seems largely ignoring the drop in the Retail Sales amid overall support from the risk front. Though, mixed clues concerning the Federal Reserve’s next action and increasing odds of another rate cut could play their part when the storm ends.

While the New Zealand economic calendar is mostly silent, housing and industrial production numbers from the US could entertain the Kiwi traders during the later part of the day. However, trade headlines could keep the momentum players happy in the meantime.

Technical Analysis

Prices seem declining gradually towards 0.6250 and then to 0.6200 unless crossing 50-day Exponential Moving Average (EMA) level nearing 0.6365, which in turn holds the key for further recovery above 0.6400 mark.

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures