- Trade tension and China’s Caixin manufacturing PMI remain in the spotlight.
- New Zealand markets are off due to Queen’s Birthday.
With the trade tension in the air, NZD/USD is trading near 0.6530 at the beginning of the Asian session on Monday.
The Kiwi pair recently took advantage of the US Dollar (USD) weakness to avoid further declines while the US provided another reason to worry for the global trade watchers, i.e. latest tariffs on Mexico.
Mexican President seems to have shaken with the US President Donald Trump’s tariff announcement and is likely discussing ways to avoid hardships during his visit to the US during this week, latest market news suggest.
On the other hand, China maintains its dislike for the US and conveyed the same via its white paper. The dragon nation also prepared a list of the US companies to have restrictions from their side that includes Fed-Ex.
While China’s May month Caixin manufacturing purchasing manager index (PMI) is likely important for the Antipodeans, holiday at New Zealand may confine the Kiwi’s response to data.
The private manufacturing gauge is expected to follow the footsteps of official PMI by lagging behind 50.2 prior to 50.00.
Technical Analysis
Contrary to 0.6480 being immediate support prior to pushing bears toward October 2018 low surrounding 0.6425, 0.6560, 0.6580 and 0.6615 seem nearby consecutive resistances for buyers to conquer ahead of aiming for 50-day simple moving average (SMA) near 0.6645.
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