- NZD/USD remains on the back foot around multi-year low as US-China trade war, sluggish data at home drag Antipodeans.
- China’s official PMI numbers fail to please commodity buyers.
- New Zealand’s Terms of Trade Index, China’s Caixin Manufacturing PMI decorate economic calendar when the US markets are off for the Labor Day.
Continuation of the US-China trade war and the presence of downbeat data at home and off-shore keep the NZD/USD pair under pressure while taking rounds to 0.6800 at the week-start trading of Monday’s Asian session.
The US tariffs on Chinese goods worth of $110 billion took place on September 01 even if China canceled previously announced tariffs to be levied this month while waiting for the trade talks. Chinese state media keep criticizing the US with the weekend news report from Xinhua giving lessons on the “US’ futile war”, as it said.
On the other hand, China’s official purchasing managers’ index (PMI) data for August, released over the weekend, showed little sign of progress. The headline Manufacturing PMI remained in the contraction region with 49.5 mark versus 49.7 expected and prior whereas Non-Manufacturing PMI crossed 53.6 forecast to 53.8.
Although US markets are closed due to Labor Day, trade headlines can keep investors busy at the month-start. On the economic calendar, New Zealand’s (NZ) second quarter (Q2) Terms of Trade Index and China’s Caixin Manufacturing PMI for August will be on the traders’ radar.
While NZ Terms’ of Trade Index isn’t expected to deviate from 1% previous readouts during the second quarter, China’s private manufacturing gauge could weaken a bit to 49.8 from 49.9.
Given the consecutive six weeks of decline towards late-2015 lows, the positive surprise from data can trigger month-start pullback especially when the US traders are away.
Technical Analysis
September 2015 lows surrounding 0.6236/43 seem immediate strong support ahead of highlighting 0.6200 round-figure and the year 2015 low near 0.6085. Meanwhile, 0.6340 and August 07 bottom around 0.6380 can keep exerting near-term downside pressure.
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
EUR/USD stays below 1.0550 after mixed US data
EUR/USD stays under modest bearish pressure and trades below 1.0550 in the American session. Although the US Dollar struggles to gather strength following mixed macroeconomic data releases, the risk-averse market environment doesn't allow the pair to gain traction.
GBP/USD recovers modestly, trades near 1.2650
GBP/USD stabilizes near 1.2650 after falling toward 1.2600 earlier in the day. Nevertheless, the pair struggles to gather bullish momentum as the deepening Russia-Ukraine conflict causes investors to stay away from risk-sensitive assets.
Gold extends gains beyond $2,660 amid rising geopolitical risks
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.