- NZDUSD is struggling on momentum through the 200-D EMA ahead of G20.
- China to insist the US remove its ban on US technology sales to Huawei.
NZD/USD has remained steady in Asia as markets get set for the headlines that will be rolling out of the G20 this weekend. A softer dollar has been to the fortune of the bulls and antipodeans, with both the Aussie and Kiwi moving higher in their ten-day consecutive advance.
Analysts at ANZ Bank explained that the Kiwi continues to seek new highs, backed by a softer USD and buoyant risk sentiment. “Softer business confidence numbers did little to phase the kiwi, as markets became increasingly optimistic on the upcoming meeting between Trump and Xi at the G20 leaders’ summit. The US has set no preconditions for the meeting, meaning additional tariffs on China may still be imposed.”
With respect to the anticipated meeting between Xi and Trump in Osaka, Japan, The Wall Street Journal was pessimistic overnight arguing that China will insist the US remove its ban on US technology sales to Huawei and lift existing tariffs on Chinese imports. They were not alone in that respect, and in the same vein, the Chinese media and commentators have also been discouraging. Hu Xijin, Chief in Editor for The Global Times who warned earlier this week that no Chinese official now speaks with optimism was tweeting overnight:
“Regarding the China-US summit, only two things are certain to me:1, The summit will be held. 2, China will stick firm to its core interests no matter what is the result. In the future, China will focus more on doing its own things well. This principle won’t change any more.”
NZD/USD levels
The ten-day long accumulation of bullish closes may have run its course at this juncture ahead of the G20 as the price meets the 200-D exponential moving average with a bearish cap. A 50% retracement of the ten-day long run opens 0.6599.
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