- Optimism at its largest customer, Australia, pleased buyers at home.
- Lack of data/event could keep traders stick to US-China political plays.
NZD/USD is taking the rounds near 0.6530 during the early Asian session on Monday as upbeat sentiment at Australia offered relief to the Kiwi as well.
With the present Prime Minister Scott Morrison’s Liberal party coming out as a surprise winner of the Australian general election 2019, market sentiment turned positive towards the Australian economy off-late.
Being the largest customer to New Zealand, Aussie optimism spread well towards Kiwi moves.
On the contrary, tensions surrounding the trade relations between the US and China continues to haunt commodity-linked currencies.
China recently conveyed its dislike for the US treatment to Huawei. Though, no strong retaliation is registered at the moment. No road map for future trade talks is being conveyed recently after the US lawmakers were told by their Chinese counterparts not to travel Beijing for further negotiations amid presently pessimistic time.
Looking forward, lack of major data/events could keep highlighting political plays surrounding the world’s two biggest economies, namely the US and China.
Technical Analysis
Recent pullback highlights the importance of eight-week old descending trend-line at 0.6565 as a break of which can propel the quote further up in the direction to 0.6580 and 0.6615 numbers to the north.
On the downside, 0.6500 acts as immediate support with October 2018 bottom near 0.6425 being on the sellers’ radar during additional south-run.
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