NZD/USD holds tightly near 0.6530 amid lack of major catalysts

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  • Absence of directives pushes the Kiwi to follow Aussie moves.
  • The US-China developments and credit card spending will gain immediate focus.

NZD/USD is taking the rounds near 0.6530 at the start of Asian trading on Tuesday. Even after refraining to decline further, the Kiwi pair didn’t move much on Monday as the absence of data/events gave little guidance to traders.

Buyers came into play at the beginning of the week as surprise election result at its largest customer, Australia, helped the New Zealand Dollar (NZD).

However, the gains were capped due to the on-going trade tension amid the US and China.

Recently, the US Commerce Department announced a 90-day temporary license to China’s Huawei to do business with the US firms after it was banned a few days back.

China might respond positively to the latest change in the US mood; though, nothing has been announced till now.

While US-China stories will be there to observe, April month credit card spending data from New Zealand will also be the key to watch. The release is expected to rise to 5.9% from 5.1%.

There prevails little or no major data/events from the US side which might curb the quote’s moves during the day.

Technical Analysis

While 0.6500 and October 2018 low near 0.6425 limit pair’s downside, an eight-week-old descending trend-line at 0.6555 seems nearby resistance, a break of which can escalate the latest recovery towards 0.6580 and 0.6615 numbers to the north.

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