- NZD/USD stays in the positive territory, supported partly by upbeat GDT Price Index.
- Recovery in the market’s risk sentiment also favors commodity-linked currencies.
- NZ Current Account, trade/political headlines can offer intermediate direction ahead of the Fed’s decision.
With the receding pessimism concerning Saudi Arabia’s oil production joining upbeat economic calendar and trade headlines, NZD/USD remains on the plus side while taking rounds to 0.6360 at the start of Wednesday’s Asian trading session,
The Kiwi pair initial benefited from the trade-positive headlines concerning the US-Japan and the US-China as the US has already signed an initial trade deal with Japan and Chinese delegates will reach the US for 13th round of initial talks. The risk-recovery gained additional support from the Saudi Arabian communication that they will be back to 70% capacity in two to three weeks, rather than initially anticipated months of recovery, after the drone attack that damaged half of its production.
Adding to the optimism was better than forecasted -1.7% reading of New Zealand (NZ) GDT Price Index to 2.0%.
As a result, Wall Street closed in the positive territory while the US Treasury yields also remained less vulnerable. However, the market’s wait and see mode ahead of the key event kept the risk tone under check.
Given the start of the crucial day, Asian traders are expected to remain on the sidelines with NZ Second Quarter (Q2) Current Account, expected $-1.117B versus $0.675B prior, likely offering initial second-tier boost to the market. However, major attention will be given to the US Federal Open Market Committee’s (FOMC) monetary policy decision where it is expected to cut the Fed rate by 0.25% with likely hints for further rate reductions in late-2019 and 2020 as well.
Technical Analysis
21-day exponential moving average (EMA) level of 0.6390 acts as an immediate resistance ahead of fueling the quote to 0.6452/60 area including monthly top and 50-day EMA. Meanwhile, a downside break below the month-start top of 0.6320 could drag the prices to 0.6270.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD recovers to near 0.6450, shrugs off mixed Australian jobs data
AUD/USD is rebounding to near 0.6450 amid renewed US Dollar weakness in the Asian session on Thursday. The pair reverses mixed Australian employment data-led minor losses, as risk sentiment recovers.
USD/JPY bounces back toward 154.50 amid risk-recovery
USD/JPY bounces back toward 154.50 in Asian trading on Thursday, having tested 154.00 on the latest US Dollar pullback and Japan's FX intervention risks. A recovery in risk appetite is aiding the rebound in the pair.
Gold rebounds on market caution, aims to reach $2,400
Gold price recovers its recent losses, trading around $2,370 per troy ounce during the Asian session on Thursday. The safe-haven yellow metal gains ground as traders exercise caution amidst heightened geopolitical tensions in the Middle East.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.