- NZD/USD eases from weekly top, marked the previous day, after sustained rebound from 0.7185.
- US President Biden signs $1.9 trillion stimulus, will commemorate US covid lockdown anniversary, ECB hints increased bond purchase within boundaries.
- New Zealand’s Business NZ PMI grew past-49.8 forecast, but below 57.5 prior, during February.
- A light calendar in Asia keeps Biden on the driver’s seat.
NZD/USD bulls catch a breather around the weekly top, flashed the previous day, while stepping back to 0.7220 amid the initial Asian trading session on Friday. In doing so, the kiwi pair buyers ignore upbeat Business NZ PMI data at home amid mixed risk catalysts while waiting for US President Joe Biden’s first prime-time speech, up for publishing at 01:00 AM GMT on Friday.
New Zealand’s Business NZ PMI for February slipped below 57.5 marked previously to 53.4, versus 49.8 market expectations. The data contradicts the soft Manufacturing Activity outlook for March, conveyed by the Australia and New Zealand Banking Group (ANZ), while also suggesting recovery from soft New Zealand Manufacturing Activity (Q4).
Also on the positive side could be the risk-on mood favored by the US $1.9 trillion stimulus, recently signed by President Biden, which in turn propelled the key Wall Street benchmarks to record top. Further, coronavirus (COVID-19) vaccine updates from Novavax, suggesting 96.4% effectiveness against the original UK covid variant also helped the bulls.
Though, the fresh tension between the US and China, latest on the Huawei joins the earlier jitters over Taiwan and Hong Kong to probe the risk-on more.
Read: Risks dwindle as US raise bars for Huawei suppliers, Novavax 96.4% effective against UK covid variant, Biden eyed
Looking forward, a light calendar in Asia adds importance to Biden’s speech even if he is likely to praise policymakers in passing the covid relief package and support during the tough time of last year. Traders will be particularly interested in watching over the hints for further stimulus amid chatters of a $2.5 trillion infrastructure plan.
Technical analysis
NZD/USD bulls can cheer a successful break of 50-day SMA, currently around 0.7217, to eye the key 0.7308-16 region comprising highs marked during January and March so far. Meanwhile, 0.7170 and the 0.7130 levels can entertain short-term sellers below 50-day SMA ahead of highlighting the monthly bottom close to the 0.7100 threshold for the bears.
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