- NZD/USD registers third straight losing streak following Second-tier NZ Data.
- US-China tussle over Hong Kong law keep risk aversion on the cards, US holiday limited the moves.
- Trade/political headlines, second-tier Aussie data will offer fresh impulse.
NZD/USD registers the third consecutive negative day while taking rounds to 0.6420 during initial Friday morning in Asia. That said, the kiwi pair showed less reaction to better than forecast Building Permits while also showing a mild move to higher than previous Consumer Confidence data.
October month Building Permits contracted -1.1% versus -2.5% forecast and upwardly revised +7.4% prior. Earlier during the day, November month ANZ-Roy Morgan Consumer Confidence for November crossed 118 prior mark with 120.7 mark.
The latest political tension between the United States (US) and China, over Hong Kong law, seems to weigh over the export-oriented economies off-late. On Thursday, the US President Donald Trump’s passed a law requiring an annual inspection of Hong Kong to maintain the special trade status and enable the US State Department to announce sanctions against violators of human rights. China and Hong Kong rushed with harsh criticism of the same and warned the Trump administration to stay out of the personal matter.
As per the latest media release, China has clearly shown its intention to retaliate the US move. However, no guidelines have been provided. With this, markets are waiting for how it could affect the US-China trade talks that have been pleasing the risk-takers before yesterday.
That said, Thanksgiving Day in the US limited market’s move and a half-day open on Friday could also see a limited reaction to China’s warnings. Though risk tone can remain a bit heavy and the same may reflect in the commodity-linked currencies like the New Zealand dollar (NZD).
Technical Analysis
A monthly falling trend line joins 100-day Exponential Moving Average (EMA) to offer strong resistance to the pair around 0.6425, a break of which could propel the quote towards November 04 high near 0.6466. On the other downside, an upward sloping support line since October 10, at 0.6373 now, seems to be the key.
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.