- NZD/USD remains pressured after Thursday’s pullback from the multi-day high.
- New Zealand’s ANZ-Roy Morgan Consumer Confidence drops back to early 2008 bottom.
- US President Trump adds challenges to risks with trade war signals.
- The first revision of activity numbers could offer intermediate moves amid virus/trade updates.
NZD/USD bounces off the intraday low of 0.6100 to 0.6115 during the pre-Tokyo open Asian session on Friday. Even so, the pair remains on the back foot after the previous day’s pullback from the seven-week top.
While optimism surrounding the re-open of New Zealand economy earlier pleased the kiwi buyers, recently downbeat data, as well as trade-war fears, seem to challenge the buyers off-late.
The latest data from ANZ – Roy Morgan Consumer Confidence for April slipped below the revised down 106 figures to 84.8, the lowest since 2008. On Thursday, China’s Manufacturing PMIs, official and Caixin both, flashed soft figures and paused bulls near the multi-day high.
However, the actual selling seems to have begun after US President Donald Trump uttered his dislike for China’s performance during the coronavirus (COVID-19) outbreak by saying that the US trade deal with China has been “upset very badly” by the coronavirus.
Also adding to the trade war fears, US President Trump recently said he could use tariffs to respond to China.
As a result, the markets’ risk-on sentiment extends the previous pessimism with S&P 500 Futures down over 1.00% to 2,868 by the press time.
With the renewed fears of the US-China trade war joining the pandemic worries, qualitative catalysts will be the key for the kiwi pair traders. Though, revision of the monthly PMI figures from the US could offer intermediate moves.
Technical analysis
Unless providing a sustained break below 50-day EMA level of 0.6095, sellers are less likely to aim for 0.6040, comprising 21-day EMA and 0.6000 round-figures. That said, buyers will wait for the fresh top beyond 0.6175 to aim for 0.6210, encompassing 100-day EMA.
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