Search ForexCrunch
  • NZD/USD stays below 0.638/50 resistance-confluence amid the overall pullback in commodity-linked currencies.
  • Mixed signals concerning the US-China trade tussle prevail.
  • New Zealand ANZ Commodity Price Index and Australian GDP will be in the spotlight.

With the Brexit showdown at the UK’s parliament grabbing the major market attention, the NZD/USD witnesses a pullback to 0.6330 during the early Asian session on Wednesday.

The Kiwi pair slumped to fresh low since October 2015 during early Tuesday as the global markets favored the US Dollar (USD) ahead of the US traders return after an extended weekend. However, upbeat comments from New Zealand’s Finance Minister Grant Robertson  and investors’ anti-USD move, mainly on the back of weaker activity data, favored the NZD/USD to not only recover the losses but also close in positive territory.

On the trade front, the United States (US) President Donald Trump mentioned that they’re doing well as far as lower-tier negotiations with China is concerned whereas China’s Vice Premier Liu He  conveyed his opposition for the trade war.

With little data/event at the domestic end, traders will seek clues from August month ANZ Commodity Price data from New Zealand for fresh clues while also relying on the second-quarter gross domestic product (GDP) data from its largest customer Australia.

The Australia and New Zealand Banking Group (ANZ) data flashed -1.4% figure during July while Australia’s GDP is expected to increase to 0.5% from 0.4% on QoQ, contrast to a likely pullback in the yearly figure of 1.8% to 1.4%.

Technical Analysis

Unless breaking the 0.6348/50 resistance-confluence including 10-day simple moving average (DMA) and nearly four-week-old falling trend-line, prices are less likely to aim for August 07 low near 0.6378 and 21-DMA level of 0.6396. As a result, sellers can keep watching 0.6300 and a recent low of 0.6269 during the pullback.