NZD/USD seesaws around 0.6680 as traders return after a long weekend
- Kiwi traders are welcomed by oil surge and greenback weakness as they return from the Easter break.
- Domestic credit card spending will be followed by housing market numbers from the US to get market attention.
The NZD/USD pair is taking the rounds near 0.6680 at the start of Asian trading on Tuesday. Some of the global bourses, including New Zealand, were off on Monday, which in-turn highlights Tuesday as the likely active trading day.
While the Kiwi opened slightly positive taking cues from the recent surge in the oil prices and sluggish data from the US, speculations that China will soon opt out of heavy stimulus is weighing on the prices.
Oil prices rallied to fresh 2019 highs amid news reports that the US is planning to cancel waivers given to eight countries importing oil from Iran in order to cut the OPEC member’s export to zero.
The US existing home sales became another housing market data from the world’s largest economy that troubled the greenback optimists while revised down the Chicago Fed National Activity Index also spread the US Dollar weakness.
New Zealand’s monthly credit card spending will be the nearest data to follow whereas housing price index, Richmond Fed manufacturing index and new home sales from the US will be the next to watch on the economic calendar.
Credit card spending (YoY) is likely to soften to 5.5% from 6.4% in March whereas February month housing price index (MoM) from the US could also weaken to 0.3% from 0.6%. Further, new home sales bear the consensus to decline to 0.650 million from .667 million on a monthly basis during March while the Richmond Fed Manufacturing Index dropped to 10 from 12 during its previous release.
NZD/USD Technical Analysis
Unless breaking 200-day simple moving average (SMA), the NZD/USD pair is more likely to decline towards 0.6650 and 0.6630 ahead of visiting 0.6600 and 0.6585 rest-points.
On the upside, 0.6710 can act as immediate resistance ahead of the 200-day SMA level of 0.6735, a break of which could recall 0.6780 back on the chart.