NZD/USD floats above 0.6300 on firmer NZ data, focus on PBOC, Fed’s Powell


  • NZD/USD stays defensive after three-week downtrend, pares recent losses amid a quiet session.
  • New Zealand Business PSI rose past 52.2 prior to 55.2 in May.
  • Hawkish Fed, recession fears favor US dollar, news from China probe Kiwi bears.
  • Light calendar highlights the risk catalysts for fresh impulse.

NZD/USD grinds higher around 0.6320 while consolidating the previous three-week advances during Monday’s Asian session. The kiwi pair’s latest gains could also be linked to New Zealand’s services activity data for May, as well as headlines from China.

New Zealand’s Business NZ PSI for May rose past 52.2 prior reading to 55.2. The private activity data joins upbeat figures of Business NZ PMI data flashed the last week, which in turn propel the hopes of another hawkish surprise from the Reserve Bank of New Zealand (RBNZ).

A piece of news from Reuters saying, “President Joe Biden's administration is reviewing the removal of some tariffs on China,” joins upbeat news from Beijing that suggests receding covid fears to favor the NZD/USD pair’s rebound.

Furthermore, Friday’s downbeat US data offer additional upside momentum to the Kiwi pair. That said, US Industrial Production for May dropped to 0.2% MoM, below 0.4% market forecast and 1.4% prior. The details suggested steady Capacity Utilization and a contraction in the manufacturing output. While the US data were softer, the Federal Reserve’s (Fed) bi-annual Monetary Policy mentioned the Gross Domestic Product (GDP) appears to be on track to rise moderately in the second quarter, per Reuters.

It should be, however, that China’s testing of anti-ballistic missile and hawkish Fedspeak are some of the main clues that exert downside pressure on the NZD/USD prices. Recently, Federal Reserve Governor Christopher Waller mentioned that he will support a 75 bps interest rate hike in July policy if data matches his expectations.

Amid these plays, the US equities marked an unconvincing relief rally while the Treasury yields were also sluggish.

Looking forward, Testimony from Fed Chairman Jerome Powell become this week’s key event amid a light calendar at home. That said, today’s interest rate announcement from the People’s Bank of China (PBOC) could also entertain NZD/USD traders if managed to surprise the markets with any rate change.

Technical analysis

Despite the corrective pullback, NZD/USD battles the 10-DMA immediate hurdle surrounding 0.6330, a break of which could direct the quote towards early June’s swing low near 0.6360. Until then, the Kiwi pair is likely to remain directed towards the yearly low marked in the last week around 0.6195. 

Additional important levels

Overview
Today last price 0.6319
Today Daily Change 0.0003
Today Daily Change % 0.05%
Today daily open 0.6316
 
Trends
Daily SMA20 0.643
Daily SMA50 0.6497
Daily SMA100 0.6642
Daily SMA200 0.6784
 
Levels
Previous Daily High 0.639
Previous Daily Low 0.6269
Previous Weekly High 0.6396
Previous Weekly Low 0.6197
Previous Monthly High 0.6569
Previous Monthly Low 0.6217
Daily Fibonacci 38.2% 0.6315
Daily Fibonacci 61.8% 0.6344
Daily Pivot Point S1 0.626
Daily Pivot Point S2 0.6204
Daily Pivot Point S3 0.6139
Daily Pivot Point R1 0.6381
Daily Pivot Point R2 0.6446
Daily Pivot Point R3 0.6502

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD attracts some sellers to near 0.6300 ahead of Chinese PMI release

AUD/USD attracts some sellers to near 0.6300 ahead of Chinese PMI release

The AUD/USD pair weakens to near 0.6300, snapping the three-day winning streak during the early Asian session on Monday. China’s fresh stimulus measures to promote its development of index investment products fail to boost the China-proxy Australian Dollar.

AUD/USD News
USD/JPY remains depressed amid hawkish BoJ and risk-off mood

USD/JPY remains depressed amid hawkish BoJ and risk-off mood

USD/JPY kicks off the new week on a weaker note, though it manages to hold above the monthly low retested last Friday. US President Donald Trump's decision to impose steep import duties on Colombia revives trade war fears and benefits the safe-haven JPY amid the BoJ's hawkish rate hike.

USD/JPY News
Gold loses ground to near $2,765 on renewed US Dollar demand

Gold loses ground to near $2,765 on renewed US Dollar demand

Gold price edges lower to around $2,765 during the early Asian session on Monday, pressured by the renewed US Dollar demand. However, the potential downside for the precious metal might be limited amid the cautious mood and uncertainty surrounding tariff measures by US President Donald Trump. 

Gold News
Week ahead: Fed, BoC and ECB meet amid Trump tariff threats

Week ahead: Fed, BoC and ECB meet amid Trump tariff threats

Three central bank decisions awaited as tariff reality sets in. Fed set to go on pause, ECB and BoC to likely cut again. But US GDP and PCE inflation could steal the limelight. Australian CPI and China PMIs also on tap.

Read more
ECB and US Fed not yet at finish line

ECB and US Fed not yet at finish line

Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures