- NZD/JPY trades around 76.15 during early Asian sessions on Monday.
- Strong New Zealand retail sales and risk-on sentiment due to positive news from the US-China trade front propels the pair.
- 76.31 seems immediate resistance for the pair to clear with 75.40 being nearby support.
The New Zealand Dollar (NZD) trades near 76.15 against the Japanese Yen (JPY) on early Monday. Not only upbeat New Zealand retail sales but risk-on sentiment backed by the reports of Trump delaying tariff hikes on China also propelled NZD/JPY. The pair now head toward 76.31 resistance comprising highs marked on 20th of December and February months.
During early Monday, the Statistics New Zealand released quarterly retail sales for the last quarter (Q4) of 2018. The figures were upbeat as they grew 1.7% during Q4 2018 against upwardly revised prior to 0.3% in Q3. The retail sales ex-autos also grew stronger in Q4 with a 2.0% rate versus 0.7% revised increase during Q3 2018.
The pair moves were also fuelled after the US President Donald Trump pleased global trade watchers via his tweeter handle. Trump praised the progress on the US-China trade discussions and showed readiness to delay the tariff hikes on China products that was supposed to take place on March 01. Mr. President also signaled a summit between him and his Chinese counterpart in Florida to reach a final agreement.
China’s official Xinhua news agency also confirmed Trump’s tweets on “substantial progress” and “delayed tariffs”.
With the welcome print of New Zealand retail sales favoring the NZD strength, the JPY becomes negatively affected due to the risk-on sentiment built by the optimism surrounding the US-China trade deal.
NZD/JPY Technical Analysis
While 76.31 including highs marked on the 20th of December and February becomes an immediate barrier for the NZD/JPY pair to surpass, 76.65 and 77.40 are likely following resistances for buyers to watch.
Meanwhile, 75.40 and 74.80 can provide immediate support for the pair ahead of fetching it to 74.50 and 73.80 rest-points.
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