- NZD/USD ignores China’s downbeat Caixin Services PMI for February.
- NZ data also eased earlier in the day after bulls cheered weaker USD, NZ GDT figures on Tuesday.
- Sluggish market sentiment ahead of the key data/events probe traders.
NZD/USD stays unaffected during its three-day upbeat, currently around 0.7300, following China’s weaker-than-expected data amid Wednesday’s Asian session. The reason could be traced from mixed risk catalysts and downbeat NZ data, published earlier in the day.
China’s Caixin Services PMI eases from 52.0 to 51.5 during February. In doing so, the Chinese activity numbers mark sustained weakness for the previous month as not only the private survey data but official figures are also weak.
Elsewhere, New Zealand Building Permits for January eased from upwardly revised 5.9% to 2.1% whereas February’s ANZ Commodity Price Index dropped below 3.6% prior to 3.3% earlier in Asia.
It’s worth mentioning that New Zealand’s GDT Price Index rose to the highest since September 2015 while flashing a 15.0% mark in its latest reading versus 3.0% prior on Tuesday. Further details suggest the average prices of the Whole Milk Powder (WMP) rose to the seven-year top of USD4,364/MT on Tuesday.
Talking about risks US President Joe Biden’s vaccine optimism joins hopes of an easy budget from the UK and hopes of a rate cut from the Chinese central bank to favor the bulls. However, cautious sentiment ahead of speech from Fed Chair Powell, US employment figures and the UK budget, not to forget US stimulus updates, keep the risks sluggish.
Amid these plays, S&P 500 Futures seesaw around 3,870, up 0.20% intraday whereas the US 10-year Treasury yields look for fresh clues to overcome the 1.41% level.
Moving on, a light calendar ahead of the US ISM Services PMI and ADP Employment Change can keep disappointing the momentum traders. However, risk catalysts may play their roles.
Technical analysis
Sellers are less likely to enter unless witnessing a daily closing below an ascending trend line from December 21, currently around 0.7195. As a result, bulls are up for challenging the area surrounding highs marked in January and touched twice last month, around 0.7320.
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
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.