NZD/USD: Bulls look for direction around multi-week high

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  • NZD/USD seesaws near the five-week high.
  • Trade optimism, weaker USD helps the Kiwi to remain strong.
  • A light economic calendar keeps the market focus on trade headlines.

With the lack of fresh catalysts, the NZD/USD pair searches for clues to extend the previous run-up while staying close to 0.6400 at the start of Tuesday’s Asian session.

The Kiwi pair recently benefited from the US-China trade optimism after the US President Donald Trump inflated odds of a deal with China when leaders of both the economies meet at the Chile APEC summit, up for November. The upbeat sentiment was also buoyed by comments from the White House Economic Adviser Larry Kudlow that if phase one of China talks goes well, December tariffs could be taken off.

In addition to the trade-optimism, the pair buyers also cheered the US Dollar (USD) weakness amid a lack of major data/event and an absence of Fedspeak. As a result, doubts surrounding the United States (US) President Donald Trump’s impeachment echoed after his comments favoring the same in the Parliament.

Given the lack of major data/events, markets will keep an eye over the trade headlines while the US Existing Home Sales for September and Richmond Fed Manufacturing Index for October could entertain investors during the later part of the day.

Technical Analysis

Pair’s successful trading beyond 50-day Exponential Moving Average (EMA) helps it rise towards the key 0.6450/55 area comprising September tops and 100-day EMA. However, a downside break of 50-day EMA, around 0.6370 now, can recall sellers targeting 0.6330 and 0.6300.

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