- Greenback weakness pleases Antipodeans after an extended weekend.
- New Zealand trade data and RBA decision are in the spotlight.
With the across the board US Dollar (USD) weakness playing its part in pleasing the Kiwi traders while returning from Monday’s holiday, the NZD/USD pair takes the round near 0.6600 at the start of expectedly busy Asian session on Tuesday.
Softer than expected manufacturing data from the US and comments strengthening previous speculations of the Fed’s rate cut from the Federal Reserve Bank of St. Louis President James Bullard could be considered as main catalysts for the USD’s latest downtick.
Additionally, investors’ rush to safe-havens amid the US-led trade tensions also played background music to the greenback downtime song.
Looking forward, investors are likely to have an active trading session as New Zealand’s first-quarter terms of trade index data will be the first to trigger the Kiwi volatility. Following that, monetary policy meeting by the central bank of its largest customer, Reserve Bank of Australia (RBA), will also please momentum traders.
While New Zealand’s trade data may flash a +1.0% mark against -3.0% prior, RBA is likely to announce a 0.25% cut in its benchmark cash rate. It should also be noted that details of the RBA statement will also be observed closely.
Other than economic data, political news report concerning the US-China and the US-Mexico trade tussle could also offer additional information to magnify market momentum.
Technical Analysis
In spite of clearing 0.6560 resistance (now support), the quote still needs to register sustained trading beyond January month low around 0.6600 in order to aim for 50-day simple moving average (SMA) near 0.6645 and 0.6685 during further upside.
Should prices fail to sustain the latest advances and slip beneath 0.6560, 0.6500, 0.6480 and October 2018 low surrounding 0.6425 could regain bear’s attention.
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