- Trade tension, Fed’s action weigh on the NZD/USD.
- ANZ data in the spotlight ahead of the key quarterly NZ employment numbers, RBNZ.
NZD/USD remains on the back foot around two-month low while taking rounds to 0.6530 at the start of the week’s Asian trading on Monday.
The not-so-dovish Fed rate cut followed the US President Donald Trump’s fresh tariffs on China, which pushed markets off the Antipodeans. Adding to the greenback strength could be mostly upbeat US employment statistics for July.
During late-week, the US President opened a window of opportunity for China to avoid witnessing harsh tariffs if it can promise to act between now and the next trade meeting in September. However, the news was also making rounds that the White House isn’t ready to delay tariffs despite China’s threats to retaliate.
While trade fears are here to stay, the domestic economic calendar becomes the key for the Kiwi traders during this week and the reason is quarterly employment data followed by the monetary policy meeting by the Reserve Bank of New Zealand.
Even if there is no doubt concerning the importance of the events up for publishing on Tuesday and Wednesday, the market’s immediate attention will be on July month’s ANZ Commodity Price and Jon Advertisements data. Forecasts suggest the Commodity Price to improvement from -3.9% to 0.0%, indicating likely improvement in inflation pressure, whereas an increase beyond 4.6% prior in Job Advertisements could also help the quote to recover a bit ahead of the crucial events scheduled for tomorrow and the day after.
An upward sloping trend-line since October 218, at 0.6500, offers nearby key support, pair’s run-up beyond July 10 low of 0.6567 becomes necessary to aim for 50-day simple moving average (SMA) figure of 0.6626.