OctaFX | OctaFX Forex Broker
Open trading account
Back

NZD/USD: Sellers keep eyes on 0.6600 amid a lack of fresh catalysts

  • NZD/USD remains under pressure following broad US dollar strength.
  • Holidays in Wellington and the US limit the pair’s performance.
  • Headlines concerning Libya and US-China trade deal could offer intermediate moves.

NZD/USD fails to defy the earlier weakness while trading around 0.6610 during the Monday morning in Asia. The pair bears the burden of broad US dollar strength and a lack of fresh impetus.

The US dollar managed to register broad gains on Friday as the latest data from the world’s largest economy suggest a re-think of the US Federal Reserve’s (Fed) “wait and watch” mode. Also supporting the greenback’s move our overall optimism surrounding the US economy based on the Trump administration’s ability to strike the key trade deals with China, Canada and Mexico.

Also supporting the Kiwi pair’s declines could be expectations of further monetary easing from the Reserve Bank of New Zealand (RBNZ). The central bank, even if not expected to announce aggressive monetary policy easing, will lag the fire-power as the Fed.

Furthermore, China’s central, the People’s Bank of China (PBOC), repeatedly undertakes measures to infuse the domestic economy but has a few successes so far. This could weigh on the commodity-linked currencies, like the New Zealand dollar (NZD), as China is the world’s largest commodity user.

The risk tone remains upbeat despite the geopolitical crisis in Libya and Iraq that propelled the oil prices.

New Zealand has a regional holiday in Wellington whereas markets in the US are off due to Martin Luther King’s Birthday. As a result, no major surprises are expected to roll-on and the greenback can keep its gains. Though, a resolution to the Libyan crisis and/or trade-positive news from either the US or China, concerning the phase-two deal, can help the pair witness a pullback.

Technical Analysis

The pair’s repeated failures to cross 21-day SMA, at 0.6654 now, grind it lower towards 0.6600 round-figure whereas last week's low near 0.6585 and 50-day SMA around 0.6555 can question the bears afterward.

 

GBP/USD pressured in the open, breaks below 1.30 the figure

GBP/USD opened with a gap to the downside of a handful of pips, but significantly, cable broke below the 1.30 handle for the first time since January'
Read more Previous

United Kingdom Rightmove House Price Index (MoM) climbed from previous -0.9% to 2.3% in January

United Kingdom Rightmove House Price Index (MoM) climbed from previous -0.9% to 2.3% in January
Read more Next
Start livechat