NZDUSD stages recovery
News Summary:
- US ADP is lower than expected. That makes USD’s broad weakness. NZDUSD currency pair get profit because of that.
- For the global trade trend, US-EU trade tension leads to an escalation of global trade threats
- the US ISM Non-Manufacturing PMI became the lowest point about ten years.
News details:
First of all, according to the newest US ADP report, private business in the United States hires 135 thousand workers in September, which is lower than expected. Also, ISM is a signal for the manufacturing industry shrinking. People worried about the US overall economy. Moreover, the US Dollar Index drops over 99 marks.
Secondly, The EU and the United States have threatened to impose tariffs on imported products. The United States will impose a 10% retaliatory tariff on EU aircraft and a 25% retaliatory tariff on agriculture and industrial products. The pessimism environment of global trade, especially between EU and US, benefits for kiwi dollar.
Finally, Chinese holiday results a lack of key data of business and trading activities. Therefore, it makes Asian business under pressure. However, the USD is weak that makes NZD going forwards.
Technical Analysis
The three-week downtrend line is at 0.6285, which is the nearby upward resistance. The key to the pair’s further rebound to the 21st Simple Moving Average (SMA) level of 0.6330. However, if it falls below 0.6250, the seller will retreat to the integer target of 0.6200.
In the same time, there are some additional information we need to focus on. For example, New Zealand’s (NZ) ANZ Commodity Price Index data for September month. It is expected to be 0.4%, with a previous value of 0.3%. Investor should also focus on trade headlines during the Chinese holiday season. Investor looking forwards to see those data that may fluctuate the kiwi dollar price.
