NZD/USD seesaws around 0.6550 ahead of Chinese trade figures
- NZD/USD establishes a choppy range between 0.6538 and 0.6545.
- Traders shrug off second-tier New Zealand data amid risk reset.
- A mild relief from the virus numbers joins mixed headlines concerning the Sino-American tussle.
- June monthly trade data from China, US inflation numbers will join risk catalysts to offer immediate direction.
NZD/USD takes rounds to 0.6540/45 amid the initial Asian trading session on Tuesday. In doing so, the kiwi pair pauses its three-day losing streak near an important support line. Other than the technical support, wait for China’s Trade Balance and mixed trading sentiment also troubles the pair traders.
The recent data from New Zealand suggest a sustained weakness in the Visitor Arrival in May contrasting with private job figures for June. Visitor Arrivals slip below -29.1% forecast to -99.00% whereas a survey by the Bank of New Zealand (BNZ), cited by the Bloomberg, signal Job ads in June are +46.9% from May.
On the other hand, the market’s risk-tone dwindles to find a clear direction after the late-US session pessimism that dragged risk barometers down. Monday’s coronavirus (COVID-19) numbers from the US mark a pause in the latest run-up led by the epicenter Texas. Further, the CNBC increased hopes of the early arrival of the pandemic’s cure while the Bloomberg strengthened optimism while citing Trump administration officials’ turning down the plan to undermine Hong Kong Dollar. However, Reuters came out with the news indicating further hardships for Chinese firms’ listings on the US bourses.
Late on Monday, markets heard US Secretary of State Mike Pompeo defying Beijing’s claims over the South China Sea. Though, US President Donald Trump tries to placate the pessimists while saying that phase one deal with China is still on and the nation is buying.
While China’s June month trade numbers will offer immediate guidance to the pair, the US inflation data will dominate the quote’s moves during the American session. Though, nothing from them is likely to supersede the importance of virus and US-China tension headlines. Forecasts suggest further weakness in China’s headline Trade Balance from $62.93B previous figures to $58.6 despite likely improvements in Exports and Imports data. On the other hand, the US inflation numbers are expected to portray additional recovery in price pressures and can raise barriers for the pair’s upside moves.
Technical analysis
Considering the pair’s multiple failures to cross 0.6600, sellers are waiting for entry below an ascending trend line from May 15, at 0.6530 now.