- NZD/USD carries the previous day’s bounce off 0.6400.
- ANZ – Roy Morgan Consumer Confidence for June rose 104.5 versus 97.3 prior.
- Pandemic fears, trade wars weigh on the risk-tone sentiment.
- Sanctions on Iran, Fed’s action are additional burdens that mostly got ignored by the bulls.
NZD/USD rises to 0.6434, the intraday high, after a second-tier data from New Zealand pleased buyers during the initial Asian session on Friday. The upbeat consumer sentiment figures not only helped the kiwi pair to extend Thursday’s rise but also shrugged off worrisome coronavirus (COVID-19) updates from the US. However, the trading sentiment remains sluggish and can play its role to cap the pair’s recent gains.
ANZ-Roy Morgan Consumer Confidence Index for June surged to 104.5 compared to the previous month’s 97.3. Though, Sharon Zollner, Chief Economist at Australia and New Zealand Banking Group (ANZ) said the data “is still well under its historical average.” The analyst also cited fears when saying, “The bounce is encouraging, but with unemployment set to rise sharply, we need to be realistic about how much spring is likely left.”
Read: ANZ-Roy Morgan NZ Consumer Confidence bounces to 104.5 in June
Apart from the statistics, nothing seems to be positive that could help the markets and the kiwi pair in turn. The reason for the pessimism could be traced from the fears of 10 times higher pandemic figures in the US and the trade wars between America and the rest of the key global economies. Additionally, US Secretary of State Mike Pompeo’s announcement of sanctions on Iran and the Federal Reserve’s stress test are an extra tolls on the market sentiment.
Amid all these catalysts, S&P 500 Futures drop 0.12% to 3,070 by the press time. It’s worth mentioning that Wall Street closed on the positive side with the US 10-year treasury yields down near 0.68% by the end of Thursday.
Moving on, holidays in China might cap the pair’s immediate moves while overall pessimism is likely to exert downside pressure on the quote.
Technical analysis
Unless closing below a 21-day EMA level of 0.6398, backed by follow-on declines under the monthly low of 0.6383, buyers are less likely to stop aiming 0.6500 threshold.
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