- The USD stands tall near multi-week tops and prompts some fresh selling.
- Positive trade-related development does little to impress bulls or lend support.
- Traders now eye the US durable goods orders data for some short-term impetus.
The NZD/USD pair held weaker below the 0.6700 handle through the early European session on Thursday, closer to 1-1/2 week lows set in the previous session.
After yesterday’s attempted rebound, the pair met with some fresh supply on Thursday and now seems all set to resume its recent pullback from multi-month tops amid the prevalent bullish sentiment surrounding the US Dollar.
Given that investors have been scaling back expectations for a 50 bps rate cut by the Fed, the greenback was further supported by increasing prospects for an eventual resolution of the prolonged US-China trade disputes.
A White House statement on Wednesday said that top US negotiators will meet their Chinese counterparts, also confirmed by China’s Commerce Ministry earlier this Thursday that negotiators will meet on July 31-August 1.
Adding to this, the US Treasury Secretary Steven Mnuchin’s overnight comments, saying that he would not advocate for a weaker currency, provided an additional boost to the buck and collaborates to the pair’s weaker tone.
It would now be interesting to see if the pair is able to find some support at lower levels or the current pullback marks the end of the recent positive momentum and the resumption of a fresh leg of a bearish trend.
Later during the early North-American session, the US economic docket – highlighting the release of durable goods orders data, might influence the USD price dynamics and produce some meaningful trading opportunities.
Technical levels to watch
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