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  • NZD/USD refrains from extending the previous recovery.
  • The US Dollar (USD) stands tall amid mixed news, static data.
  • US-China trade talks to resume on October 10-11, US unlikely extend waivers for firms doing business with China’s Huawei.

RBNZ’s Orr couldn’t gift a prolonged run-up to the Kiwi as mixed trade/political headlines and the USD’s overall strength captivate the NZD/USD pair around 0.6300 at the start of Friday’s Asian trading.

CNBC’s news report, claiming US-China trade talks’ resumption on October 10-11 in Washington, fails to overcome the Bloomberg story mentioning the White House’s refrain from extending sanction waiver to the American firms doing business with China’s Huawei. The reason could be the US lawmakers’ lack of surprise, as said in the CNBC report, from the news.

On the other hand, the USD stays strong despite growing speculations of President Donald Trump’s impeachment as a lack of disappointment from data and Fed’s recently hawkish rhetoric makes the greenback the cleanest shirt in the dirty laundry.

The Kiwi pair surged during Thursday’s Asian session after the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr turned down the speculation that the central bank might adhere to ‘unconventional’ monetary policy measures. The pair then hold on to gains till the day-end by holding the top place among major currencies.

Investors have no major data/events from New Zealand up for publishing, which in turn pushes them to keep eyes on trade/political headlines. However, the broad the greenback strength is likely to continue exerting downside pressure the pair.

Technical Analysis

Prices seek for direction between the recent low near 0.6255 and 21-day simple moving average (SMA) around 0.6345.