- NZD/USD benefits from China’s better than forecast Caixin Manufacturing PMI.
- The activity gauge deviated from the earlier official source.
- Trade war, USD weakness has been favoring the Kiwi, eyes on US data for now.
With a surprise increase in China’s October month Caixin Manufacturing Purchasing Managers Index (PMI), NZD/USD extends its recent recovery to challenge the seven-week high while taking the bids to 0.6435.
China’s October month Caixin Manufacturing PMI deviated from the official data in a way that it rises from 51 forecast to 51.7 while the NBS Manufacturing PMI dropped below market forecast to 49.3 on Thursday.
The US-China trade war concerns have been aggravating and the US Dollar (USD) keeps bearing the burden of the Fed’s easy money policy after third consecutive rate cut.
At the end of the key closed-door meeting between the leaders of China’s Communist Party, Bloomberg shared worries of the diplomats while relying on anonymous sources, “Chinese officials are casting doubts about reaching a comprehensive long-term trade deal with the U.S. even as the two sides get close to signing a “phase one” agreement. In private conversations with visitors to Beijing and other interlocutors in recent weeks, Chinese officials have warned they won’t budge on the thorniest issues.”
Investors will now focus on the United States (US) October month employment data with the spotlight on the headline Nonfarm Payrolls (NFP). Forecasts suggest a soft figure of 89K versus 136K prior. Other than job data, comments from the Fed policymakers and ISM manufacturing numbers will also entertain markets.
Technical Analysis
Unless providing a daily closing beyond a seven-week-old falling trend line, at 0.6435, prices are less likely aim for September month high of 0.6452 and 0.6500 round figure. As a result, bears will wait for a downside break below Wednesday’s low nearing 0.6330 for fresh entry.
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