- On the wide, while below the key 200-month moving average resistance at 0.7007 longer term technicals remain bearish.
- Traders will await the Asian session and will have eyes on how Chinese markets perform ahead of European and US traders returning.
NZD/USD has been able to recover from the July lows as the dollar gives back some ground and despite a breakdown in the GDT price index and the lull on industrial metals, (albeit weighing mostly on AUD), simultaneously shrugging off the trade war headwinds. Currently, NZD/USD is consolidating in a sideways 4th July market between 0.6749, (as of Tokyo open), and 0.6783, (European session early high).
However, there no 4th July fireworks in the US session as for as NZD/USD goes, with price action confined to just 10 pips. Traders will await the Asian session and will have eyes on how Chinese markets perform ahead of European and US traders returning and full calendar in terms of US events on the dollar side of the cross.
The week ahead:
On Thursday in North America, we have the ADP private employment, initial jobless claims, ISM non-manufacturing index and the FOMC minutes. Trader’s attention will then turn to the U.S. nonfarm payrolls data and the Chinese tariff threat that kicks on the same day.
NZD/USD levels
0.6750 is the near-term support while below the 0.67 handle, support then comes in at 0.6680. 0.6850 is the first key upside target on a continuation of the reversal through the 200-hr SMA at 0.6801. Only a break above 0.6850 would alleviate the downside pressures and eyes remains towards 0.6675. On the wide, while below the key 200-month moving average resistance at 0.7007 longer term technicals remain bearish.
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