- NZD/USD sellers catch a breath after testing 50-day EMA the previous day.
- USD strength, mixed sentiment surrounding the US-China trade deal dragged Kiwi.
- No major data up for publishing during Asia, trade headlines will be mostly followed.
Following the largest loss in a month, NZD/USD retraces around 0.6385 at the start of Friday’s Asian session.
While no major data was up for publishing from New Zealand, an absence of major disappointment from the United States’ (US) economic calendar helped the US Dollar (USD) to remain strong against the majority of the counterparts. It should also be noted that the European Central Bank’s (ECB) sustained support for monetary easing and downbeat statistics elsewhere have also contributed to the greenback’s strength the previous day. Furthermore, uncertainty surrounding Brexit gave an additional reason to the USD buyers.
Adding to the pair’s downside was mixed sentiment concerning the US-China trade deal despite the US Vice President’s positive comments as his support to Hong Kong protesters and criticism of China’s Human Rights record seems to worsen the key discussion between the two superpowers, up for November in Chile.
Looking forward, no major data is up to publish during today’s Asian session, which in turn will keep the focus on the trade/Brexit headlines for fresh direction.
Technical Analysis
While prices seem to bounce off a 50-day Exponential Moving Average (EMA) level of 0.6372, the 100-day EMA level of 0.6445 and September month high of 0.6452 could keep exerting downside pressure towards 0.6350 and 0.6280 numbers to the south.
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