- Trump’s decision to delay new tariffs on Chinese products provided an early lift.
- Reviving safe-haven demand seemed to be the only factor weighing on the Kiwi.
- Traders now look forward to the ECB decision/US CPI print for a fresh impetus.
The NZD/USD pair quickly retreated around 20-pips during the early European session, albeit has still managed to hold with modest daily gains around the 0.6430 region.
Having shown some resilience near the 0.6400 handle over the past two trading session, the pair caught some fresh bids on Thursday after the US President announced to delay a planned tariff hike on Chinese goods by two weeks. This comes on the back of China's offer to buy more US agricultural products and remained supportive of the early up-move.
Downside seems limited ahead of ECB/US CPI
Apart from encouraging trade-related developments, a modest US Dollar pullback from one-week tops further collaborated to the pair's intraday positive momentum to the highest since mid-August. However, reviving safe-haven demand, which tends to drive flows away from perceived riskier currencies - like the Kiwi, kept a lid on any further up-move.
Meanwhile, the downside is likely to remain limited, at least for the time being, as investors are likely to await a fresh catalyst from the latest ECB monetary policy decision. This coupled with the release of US consumer inflation figures might influence the USD price dynamics and produce some meaningful trading opportunities later this Thursday.
Hence, it will be prudent to wait for a sustained break below the 0.6400 round figure mark before confirming that the recent bullish trajectory has already run out of the steam and positioning for any meaningful corrective slide ahead of the highly anticipated FOMC policy meeting on September 17-18.
Technical levels to watch
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 holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.