- Trade tension, US Dollar (USD) strength kept derailing commodity-linked currencies.
- Lack of domestic data increases the importance of the AU employment report.
Looming doubts over the global trade mechanism superseded contrasting inflation data from China and the US, which in turn negatively affected the Antipodeans off-late. NZD/USD marked the third day of losses by Wednesday’s end while remaining in the red area around 0.6575 at the start of Thursday’s Asian session.
May month inflation data from China and the US flashed mixed signals. The dragon nation’s CPI managed to meet the upbeat expectations mainly based on rising pork prices but price gauge missed the marks inside the world’s largest economy due to drag in used car prices.
Trade tensions remain present with confusing tweets from the US President Donald Trump as he expects a trade deal with China but also stands ready to levy fresh tariffs on $325 billion worth of Chinese goods if it doesn’t.
With no domestic data on hand, the Kiwi traders may now focus on employment numbers from its largest customer Australia. May month seasonally adjusted employment change may soften to 17.5K from 28.4K but unemployment rate can benefit from last month’s election and can slip to 5.1% from 5.2%.
Elsewhere, the US weekly jobless claims for the period ended on June 07 remains modestly flat to 217K versus 218K earlier.
Technical Analysis
Unless closing beneath late-May high around 0.6560, NZD/USD is less likely to decline further towards 0.6500 and 0.6480. With this, 0.6600 and 50-day simple moving average (SMA) level around 0.6620 gain buyers’ attention during the pullback ahead of targeting the latest high near 0.6680.
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