NZD/USD stays under pressure around 0.6300, awaits fresh catalysts for further direction
- NZD/USD remains on the back foot amid a lack of fresh clues.
- The quote struggled amid China’s upbeat Caixin Manufacturing PMI, US-China trade war.
- No domestic data today, RBA meeting/trade headlines will be followed closely.
With the US markets’ absence and no fresh trade headlines restricting the flow of catalysts, the NZD/USD pair carries earlier weakness while taking rounds to 0.6308 at the start of Tuesday’s Asian session.
The Kiwi pair seesawed around multi-year low, flashed in August, during the first trading day of the current month as investors were undecided about the US-China trade war amid no major headlines while upbeat prints of China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) added worries to market players.
The US tariffs on Chinese product came into effect without any change even if China stepped back from its retaliation expecting it to help in trade negotiations when they confront Trump administration sometime during the month.
Protests at Hong Kong continue to worsen with the latest leaked audio of the national leader Carrier Liam signaling Beijing’s invisible hand stopping her from resigning. China is about to hold a conference to review the situation in Hong Kong, any direct statements indicating further use of military to placate the situation might ire the US as it has previously warned the dragon nation not to adhere it.
While no major data/event from New Zealand is scheduled for publishing, investors will keep an eye over trade/political headlines together with the Reserve Bank of Australia’s (RBA) monetary policy meeting as Australia is its largest customer. Further, the US traders will be back after a long weekend and may react to the weekend news concerning the increasing trade tension amid news tariffs from the US taking effect. Additionally, the US Manufacturing PMIs from Markit and ISM will offer extra information to follow.
Technical Analysis
Pair’s break of recent low surrounding 0.6283 can set the course of further deterioration in the prices to September 2015 low near 0.6236 ahead of highlighting August 2015 bottom close to 0.6085. On the upside, 10-day simple moving average (DMA) surrounding 0.6353 can offer immediate resistance ahead of August 07 low near 0.6378.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
