- US Dollar Index stays below 98 on Monday.
- Eyes on speeches by FOMC’s Powell and Clarida.
After losing 60 pips last week and closing in the negative territory for the fifth straight week, the NZD/USD pair is staging a modest technical recovery on Monday. As of writing, the pair was up 0.3% on the day at 0.6540, 7 pips below its daily high.
Heightened fears of the U.S.-China trade conflict intensifying weighed on antipodeans last week. The fact that there were no fresh developments that could have revived the optimism suggests that the pair’s rebound is technical in nature. Furthermore, several news outlets today reported that China was considering suspending business with suppliers who agreed to halt supplying Huawei and that there could be a temporary hike on tariffs imposed on Apple products, reaffirming that the trade dispute is unlikely to be resolved anytime soon.
Later in the day, FOMC Chairman Powell and Vice Chair Clarida’s speeches will be looked upon for fresh impetus. Meanwhile, the US Dollar Index is posting small gains at 97.90, helping the pair stay in the positive territory for the time being.
The economic docket in New Zealand this week will feature the retail sales and trade balance figures as well as the bi-weekly GDT auction.
Technical levels to consider
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