NZD/USD advances beyond 0.6430 on renewed US-China trade optimism

• Next round of US-China trade talks could reportedly take place before Thanksgiving.
• Credit Card Spending data from New Zealand came in below market expectations.  
• Coming up: Weekly Jobless Claims and Existing Home Sales data from US.

The NZD/USD pair tested the 0.6400 mark for the second straight day on Thursday but didn’t have a difficult time reversing its direction. As of writing, the pair was trading at its highest level since November 4th at 0.6336, adding 0.28% on a daily basis.

NZD continues to react to US-China trade headlines

In the absence of significant macroeconomic drivers, developments surrounding the United States (US)-China trade dispute continue to drive the pair’s action.  Chinese Vice Premier Liu He on Thursday noted that he was  confident about reaching the phase one of the trade deal.

Additionally, the Wall Street Journal reported that China has invited Secretary Treasury Mnuchin and Trade Representative Lighthizer to China with hopes of the next round of face-to-face talks taking place before Thanksgiving.

Meanwhile, the only data from New Zealand revealed that Credit Card Spending in October increased by 2.5% on a yearly basis and fell short of the market expectation for an increase of 5.5%.  

On the other hand, after the Federal Open Market Committee’s (FOMC) October meeting minutes on Wednesday reaffirmed the wait-and-see approach regarding the near-term policy outlook, the greenback remained stuck in its weekly range below the 98 handle. Later in the session, weekly Jobless Claims data and Existing Home Sales figures from the United States will be looked upon for fresh impetus.

Technical levels to consider