- NZD/USD stays below 100-day SMA at the week’s trading start.
- Prices await fresh clues to extend the latest optimism that flashed 11-week high.
- Risk tone remains positive amid positive headlines concerning US-China trade relations.
Despite rising to 11-week high on Friday, the NZD/USD keeps trading below 100-day SMA as it takes the rounds 0.6438 at the start of the week’s Asian trading session on Monday.
Prices recently buoyed by upbeat US-China trade sentiment and receding calls of the Reserve Bank of New Zealand’s (RBNZ) rate cut in February, against previously anticipated in November.
Friday’s better than forecast employment data from the United States (US) failed to propel the US Dollar (USD) as ISM’s manufacturing gauge weighed on the greenback. It should also be noted that the Fox Business Network quotes the US President Donald Trump signaling that the two sides could sign a so-called phase one agreement in Iowa this month.
Sentiment concerning the phase one trade deal between the US and China has been positive with the recent calls from US and Chinese diplomats portraying rosy picture of the phase one deal. In addition to the US President, Treasury Secretary Steve Mnuchin also mentioned that the US and China are working hard to conclude trade deal while speaking to reporters in New Delhi.
Investors now look for fresh clues to extend the near-term upside amid the US-China trade optimism. Tuesday’s New Zealand employment data will be the key to wait for while there prevails an absence of Kiwi statistics for the day. On the other hand, the US Factory Orders for September, expected -0.3% versus -0.1% prior, will decorate the US economic calendar.
Technical Analysis
Not only a 100-day Simple Moving Average (SMA) level of 0.6465 but August 09 high of 0.6500 also limits pair’s immediate upside, which in turn highlights the importance of 21-day SMA level of 0.6350 and last week’s low around 0.6330 as near-term key supports.
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