- NZD/USD surges to the three-day top after New Zealand GDP data.
- US-China jitters continue without any major reaction to the phase-one from either side.
- Voting on US President Donald Trump’s impeachment, the Aussie employment stats will be the immediate catalysts.
NZD/USD buyers praise the New Zealand GDP figures while marking 0.6615 figures as a quote amid the initial Asian session on Thursday.
New Zealand’s third quarter (Q3) Gross Domestic Product (GDP) came in as 0.7% QoQ versus 0.6% forecast, the GDP fell below 2.4% yearly expectations to 2.3%. November month trade numbers were also out with the GDP figures. Herein, the headline Trade Balance (YoY) came in as $-4.82 B against downwardly revised $-5.07B prior.
In the absence of trade-related comments from China, the Federal Reserve (Fed) officials, like Richmond Federal Reserve President Thomas Barkin, seem to join the US diplomats in praising the phase-one. Further, Chicago Federal Reserve Bank President Charles Evans also tried to portray a rosy picture of the US economy while saying that he is not expecting any more ‘risk management’ rate cuts to be needed. However, those words seem to fell on deft ears as markets were earlier preparing for the headline growth figure.
Recently, CNBC came out with the news that China has been reluctant to commit to the number of agriculture products it’s willing to buy. The story conveys uncertainty about the trade relations between the US and China.
Even so, the US 10-year treasury yields rose to 1.92% by the end of Wednesday while the S&P 500 Futures marks gains to 3,200 by the press time.
Following the market’s initial reaction to New Zealand’s headline statistics, traders will keep eyes on November month’s job data from the largest customer Australia. Additionally, details of the US-China trade relations and US President Donald Trump’s impeachment voting will also entertain investors.
It’s worth mentioning that the Philadelphia Fed Manufacturing Survey and Existing Home Sales will decorate the economic calendar during the early US session.
Technical Analysis
200-day Simple Moving Average (SMA) level near 0.6530 holds the key to pair’s plunge towards November top nearing 0.6465 while recent high surrounding 0.6635 exert downside pressure on the prices.
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