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NZD/USD seesaws near 0.6670 amid USD weakness, better than forecast New Zealand GDT data

7/4/2019, 5:05:17 PMBasics of Trading
NZD/USD seesaws near 0.6670 amid USD weakness, better than forecast New Zealand GDT data

Having initially benefited from the US Dollar’s (USD) broad weakness, on the back of likely US-EU trade tensions, second-tier New Zealand data helped the NZD/USD to remain on the path of recovery towards 0.6670 by the start of Wednesday’s Asian trading session.

Proposal of levying fresh tariffs on the EU’s $4 billion worth of goods from the US Trade Representative’s office reversed earlier risk-on sentiment backed by US-China trade truce.

The resultant USD declines even ignored upbeat comments from the Cleveland Federal Reserve President Loretta Mester.

Global risk barometer, the US 10-year treasury yield, was again dragged below 2.00% mark to 1.0975 by the press time.

The Kiwi pair’s upside momentum gained additional strength after the New Zealand’s fortnightly release of the GDT Price Index came in better than -3.6% forecast to -0.4% with the key component whole milk powder also registering a rise to $3,302 a tonne from $3,208 prior.

Investors may now look forward to extra news on how the US-EU trade rift might develop while also keeping an eye over the developments surrounding the US-China if any. Further, New Zealand’s June month ANZ Commodity Price will be observed from the economic calendar.

Technical Analysis

In addition to the upside clearance of 200-day exponential moving average (200-D EMA) level of 0.6719, the quote needs to rise beyond latest high of 0.6728 in order to aim for mid-April highs of 0.6784, failure to do so can again fetch the quote to 100-D EMA support of 0.6662 and then to 0.6610 rest-points