- The US close, lack of data at home compressed market moves off-late.
- Political tension between the US and China persists.
- Second tier US data to welcome the US players with no major catalysts from New Zealand.
Having witnessed no major moves at the week-start, mainly due to the US markets’ off, the NZD/USD pair is modestly bid near 0.6550 at the beginning of Tuesday’s Asian trading.
Despite little activity, the Kiwi pair remained soft on Monday as harsh comments from the US President Donald Trump against China and a strongly worded opinion piece from China pushed investors to gauge further tension amid the world’s two largest economies.
In addition to the off at the US markets, absence of data from New Zealand also played its role portraying a silent day.
Looking forward, New Zealand has nothing major to release during the Asian session but the US traders will be welcomed by S&P Case Shiller home price index and consumer confidence.
Technical Analysis
While 0.6515 and 0.6480 may act as immediate support, pair’s further declines could direct bears towards October 2018 low surrounding 0.6425. On the contrary, the latest high near 0.6560 and April month bottom around 0.6585 can confine nearby price advances ahead of highlighting 0.6610, 0.6660 and 50-day simple moving average (SMA) level of 0.6690.
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