NZDUSD stages recovery
NZDUSD stages recovery
- 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.
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.
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.
This week’s jobless claims data has hit unprecedented numbers. The number jumped to 3.28 million. Initial expectations of 1-1.5 million, which was still a very high estimate, were blown out of the water.
The New Zealand Dollar is fighting it’s way back up as the country enters it’s first official day of nationwide lockdown. It posted a 0.67% gain for the trading day, up to 0.58390 cents against the US Dollar. Just a week ago the NZD had dropped to 0.56, and looked ready to hit the 55 cent mark, as news broke of Air New Zealand’s layoffs.
The Nikkei 225, or Japanese Stock Index had an 8% gain for the day, following on from its 7% gain from the previous day. Less than a week ago the Nikkei had just hit lows not seen since 2017, falling below 20,000 points. However in just 2 days it has made back its losses and is now rapidly on the rebound back to the 20,000 mark.
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