- NZD/USD seesaws around intra-day high after New Zealand’s ANZ Activity Outlook beat forecasts by a huge margin.
- US President Donald Trump’s passage of Hong Kong bill triggered fresh trade war fears.
- China’s initial reaction is harsh, as expected, retaliation awaited.
Following unexpectedly high ANZ Activity Outlook from New Zealand (NZ), the NZD/USD pair takes rounds to 0.6425, after flashing the intra-day top of 0.6431, during early Thursday.
New Zealand’s November month Business Confidence and Activity Outlook numbers from the Australia and New Zealand Banking Group (ANZ) came in mostly better than anticipated. However, the later (Activity Outlook) gained major market reaction due to the gap from -3.6% expected to +12.9% actual. Business Confidence grew to -26.4 versus -30.8 market consensus and -42.4 earlier.
Read: New Zealand ANZ business survey for November improves dramatically, boosts NZD
In a reaction to the data, the NZD/USD pair surged heavily and recovered most of the losses previously piled due to the fresh trade war fears. The United States (US) President Donald Trump recently signed the bill that could help the Hong Kong protesters by giving the right to the US to sanction any person/institute indulged in human rights violations.
Read: Hong Kong bill may face retaliation – GT (Waiting for the full market risk-off response)
China has clearly shown its dislike for the same bill when it crossed the US Congress and indirectly warned the Trump administration about its negative impact on trade relations. On the other hand, the Hong Kong government also recently reiterated its dislike for the bill.
Investors will keep eyes on China’s response to the bill and how it could affect the widely anticipated phase-one deal between the US and China.
Technical Analysis
Prices keep being under press unless breaking the monthly top near 0.6470, which in turn highlights the importance of 21-day Exponential Moving Average (EMA) near 0.6400 as immediate support.
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