- NZD/USD reverses the early-Asian gains that probed a two-week high.
- China’s October month Caixin Services PMI rose past-54.8 prior to 56.8.
- Risks wobbles as the Trump camp recently offered tough fights to blue wave hopes.
NZD/USD erases most of the initial Asian gains while declining to 0.6682, up 0.06% intraday, during early Wednesday. In doing so, the kiwi pair pays a little heed to China’s upbeat service activity numbers from Caixin.
Read: China’s Caixin Services PMI beats estimates with 56.8 in October
The reason could be traced from the US dollar’s latest strength, snapping a two-day losing streak, amid fresh challenges to the hopes of the Democratic Party’s sweeping victory in the American election, mostly cheered as a blue wave.
Check here for live updates: Four more years for Trump or a victory for Biden? – Live coverage
The New York Times mark 95% chances of US President Donald Trump’s victory in the key state Florida. This challenges the initial lead of Joe Biden & Company during the polls.
As a result, the US dollar index (DXY) rises 0.16% to benefit from the risk-off mood while stocks in Asia-Pacific and the S&P 500 Futures reverse the early gains to post mild losses by press time.
Looking forward, traders will be interested in confirming the blue wave hopes before buying more of the NZD/USD. Also challenging the bulls could be the hopes of RBNZ’s rate cut next week after RBA’s dovish move on Tuesday.
Technical analysis
October 27 top surrounding 0.6730 becomes a tough nut to crack for the NZD/USD bulls before aiming the September month’s peak near the 0.6800 threshold.
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