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NZD/USD trading steady in quiet Monday action

2018-10-29 11:33:22Basics of Trading
NZD/USD trading steady in quiet Monday action

The NZD/USD opens the new trading week largely unchanged as Pacific-Asia traders come online with thin data on the offering and market sentiment hanging in the balance after last week's risk rout.


Monday sees the early data docket clear of any meaningful readings for the NZD, but US Personal Consumption figures to come later in the day will see the US Dollar once again driving broader markets, though the key consumption reading is expected to hold steady at 2% for the year into September.


This Friday marks another showing of the US Non-Farm Payrolls, and broader markets will begin buckling down early this week in advance of the critical data point, with investors looking closely at the reported figures to catch a whiff of where the broader US economy is headed in terms of job growth, with a hawkish Fed leaning heavily into higher future growth with four rate hikes on the dot plot for next year.


NZD/USD levels to watch


Last week saw the Kiwi get rejected decidedly by the 50-day moving average from 0.6610, and the pair has remained in a firm bearish trend since mid-April of this year, falling from just shy of the 0.7400 handle to plumb the depths near 0.6400; a sequence of lower highs/lower lows remains uninterrupted for over six straight months, and the current support remains thin at September's last swing low of 0.6500.