- Post-NFP market optimism confronted fresh doubts over the US-China trade tussle.
- Lack of data confined trade sentiment by portraying a choppy session.
- New Zealand’s ANZ Truckometer and comments from Fed policymakers in the spotlight.
Amid the recent lack of catalysts from the US and New Zealand, the NZD/USD pair trades modestly flat near 0.6630 at the start of Tuesday’s Asian session.
Although likely weakness in lumber exports to China (third highest export earner for New Zealand) and fresh doubts over the US-China trade differences could have dampened the Kiwi, the latest improvement in market optimism helped the commodity basket and the commodity-linked currencies remain mostly positive on Monday.
As per the latest news report, be it from the US or China, the world’s two largest economies are far from a trade deal despite recently agreeing to halt the tariff war. The same exert downside pressure on the Antipodeans as China is the world’s top commodity user.
Elsewhere, China’s demand for the Kiwi logs has been deteriorating amid increasing supply at home, which in turn results into crashing prices of the economy’s third highest export earner and raises expectations of future hardships.
Moving on, investors await comments from the US Federal Reserve policymakers to extend latest positive momentum while New Zealand’s ANZ Truckometer can offer intermediate moves to trade.
Given the Truckometer data’s latest weakness, any more disappointments can weight over the Kiwi pair. Further, analysts fraternity will cheer upbeat statements from the Fed speakers ahead of the key Fed Chairman Jerome Powell’s testimony during this week.
Technical Analysis
While 21-day moving average (21-DMA) offers immediate support to the pair around 0.6615, a break of which can trigger fresh downside towards May 27 high of 0.6560, followed by May 22 top surrounding 0.6511. Alternatively, pair’s ability to cross last-week low near 0.6656, 100-day SMA level around 0.6690 and 200-day SMA level of 0.6712 may flash on bulls’ radar.
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