- China and US have reportedly agreed to “phased rollback” of tariffs.
- US Dollar Index moving sideways below the 98 mark.
- Coming up: Weekly Jobless Claims and September Consumer Credit Change data from US.
The NZD/USD pair gained traction on Thursday as the latest headlines surrounding the United States (US) – China trade dispute helped antipodeans gather strength. As of writing, the pair was trading at 0.6375, adding 0.12% on a daily basis.
Renewed trade optimism lifts NZD
Earlier in the day, China’s Commerce Ministry in a statement announced that the US and China have agreed to cancel existing tariffs in different phases. “If China and the US reach phase one trade deal, both sides must cancel existing tariffs at the same time, in the same proportion based on the agreement,” the statement read.
Additionally, Chinese news outlet Xinhua reported that China was considering to remove restrictions on poultry imports from the United States.
On the other hand, the US Dollar Index, which rose to 98 area earlier this week supported by upbeat macroeconomic data releases, is moving sideways on Thursday, allowing the trade headlines to continue to dominate the pair’s action. Later in the session, weekly Jobless Claims data from the US and September Consumer Credit Change report will be looked upon for fresh impetus.
Technical levels to watch for
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