- Latest positive rhetoric from the US President helped trigger market recovery.
- China’s industrial production and retail sales data are in the spotlight for now.
With the on-going tariff war between the US and China continue troubling the global markets, the NZD/USD pair is trading near 0.6570 at the start of Wednesday’s Asian session.
Despite little economic details on hand, the Kiwi pair offered pullback from the previous declines as the US President Donald Trump struck a more conciliatory tone on the developments surrounding the US-China trade deal.
Adding to the recovery could be the US spokesman that conveyed the US Treasury Secretary’s likely visit to China.
However, the bears couldn’t totally agree as President Trump’s statements also showed readiness to add some more fuel into the already tensed trade environment.
Investors may now concentrate on China’s April month details of retail sales and industrial production for fresh impulse. Retail sales may retrace to 8.6% from 8.7% on a yearly basis whereas industrial production could drop to 6.5% versus 8.5% prior.
Given the recent trade positive triggers from the US, China data can escalate the Kiwi pair’s latest short covering moves if being positive.
Technical Analysis
While 0.6560 and 0.6500 hold the gate for the quote’s decline to revisit October 2018 lows near 0.6425, an upside clearance of seven-week-old trend-line resistance, at 0.6600 now, can please short-term buyers with 0.6630, 0.6650 and 0.6685 numbers to the north.
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