NZD/USD trades little changed around 0.6760 as markets await fresh clues

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  • Kiwi traders await fresh clues from the US-China trade negotiations as the economic calendar is likely offering another silent day.
  • 0.6800 and 0.6805/10 seem important resistances to justify recent recoveries from 200-day SMA.

NZD/USD is taking the rounds near 0.6760 at the beginning of Asian sessions on Tuesday. The Kiwi pair changed little on Monday as lack of major catalysts pushed traders to sidelines. No major data is up for release from New Zealand but the US industrial production could offer active sessions during the later part of the day. Though, headlines on the US-China trade shouldn’t be missed and could keep busying antipodeans as and when arise.

The NZD/USD pair initially took advantage of earlier trade and credit data from China and registered gains backed by overall risk-on during Monday’s Asian trading. However, the Kiwi couldn’t hold earlier gains as the US Treasury Secretary Steve Mnuchin said still more to do with China on trades. 

The ANZ report stated that New Zealand’s shipments to China have been growing noticeably during the last decade and the same could be a reason behind the NZD’s additional response to Chinese headlines.

The risk-on market sentiment turned risk-off after the US earnings season couldn’t bode well whereas investors focused on the comments from the Federal Reserve Bank of Chicago President Charles Evans that said the US inflation numbers was weaker than expected.

Traders may now focus on the US-China trade negotiations that are reaching its final stages. The US recently pushed China for more buying of agricultural goods in return of easing some terms over the state industrial subsidies. Though, crucial talks on currency manipulation are still to take place and might affect the mood as it has been one of the hitting points for the US towards China.

The US industrial production (MoM) for March may rise 0.2% from a revised 0.0% while the capacity utilization may remain unchanged at 79.1%.

NZD/USD Technical Analysis

In spite of gradual recovery from the 200-day simple moving average (SMA), the NZD/USD pair needs to cross 0.6800 resistance in order to aim for 0.6805-10 area comprising 100-day and 50-day SMAs.

On the downside, 200-day SMA level of 0.6730, followed by 0.6710 and 0.6690, are likely nearby supports for the pair ahead of highlighting 0.6650 rest-point.

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