- Early-day silence and lack of fresh catalysts on an important day hold the pair tightly around support.
- Trade deal and employment will be the keywords of the day.
NZD/USD trades near 0.6750 at the start of Friday’s Asian trading. The Kiwi pair is in a tight spot off-late as developments surrounding the US-China trade deal and comments from the Fed policymakers confront the usual NFP-day nervousness. Investors may continue focusing on the trade deal progress while employment details from the US will be in the spotlight.
With Chinese Vice Premier Liu He and company in Washington for giving final touches to the US-China trade deal, comments from various lawmakers grabbed market attention off-late. Among them, the US President Donald Trump, Trade Representative Robert Lighthizer and the guest Mr. He were on the top. All of them praised the progress but showed their own concerns for difficult points to tackle.
Details of statements are here: Trump: Trade deal very close, the 4-week timeline for a deal to be announced
On the other hand, there were some Fed policymakers like the President of the Federal Reserve Bank of Philadelphia Patrick Timothy Harker and President of the Federal Reserve Bank of Cleveland Loretta J. Mester. Both of them supported the Fed’s loose monetary policy while affirming on the strength of the economy.
The NZD/USD pair dropped on Thursday as upbeat numbers for the US jobless claims and uncertainty ahead of the key events like the He-Trump meet and today’s NFP pushed traders to the greenback.
Next up in the investors’ radar will be how the US and Chinese lawmakers progress on some of the tough issues as intellectual property rights whereas the March month employment data will be up for a grab.
Consensus favors the headline Nonfarm payrolls (NFP) to recover from disappointing prints of 20K in February to 180K and take the three-month figure near the average. The average hourly earnings (YoY) and the Unemployment rate could remain unchanged at 3.4% and 3.8% respectively.
NZD/USD Technical Analysis
Horizontal-line connecting recent lows on hourly chart signals 0.6750 as important support, a break of which can fetch the quote to 0.6720 and then to 0.6700 supports.
On the upside, 0.6800 has continuously held the pair’s upside capped since Tuesday, a break of which can propel prices towards 100-day simple moving average (SMA) level of 0.6715 and 50-day SMA level of 0.6730.
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