NZD/USD attempts a break above 0.5700 as Jinping’s impact fades, US GDP buzz
- NZD/USD is playing around 0.5700, eyeing a break above 0.5700 amid a risk-on mood.
- China’s Jinping impact that dragged the kiwi bulls has started fading away.
- The US economy is expected to deliver a positive growth rate for the third quarter of CY2022.
The NZD/USD pair has given an upside break of the consolidation formed in a narrow range of 0.5662-0.5696 in the early Tokyo session. The asset is playing near the round-level resistance of 0.5700 and is working on further advancement.
The positive risk profile is gaining more traction as S&P500 futures have made a positive start after a cheerful Monday. Meanwhile, the US dollar index (DXY) is oscillating around 112.00 as investors have shifted to the sidelines ahead of the US Gross Domestic Product (GDP) data. The 10-year US Treasury yields have jumped to 4.25% after dropping to 4.15%.
On Monday, the antipodean witnessed a steep fall despite a cheerful market mood. An unprecedented third term for China’s XI Jinping dented the sentiment of investors that invests in Chinese equities and other related assets. The kiwi dollar was punished for being a leading trading partner of China, as Jinping’s ideology-drive approaches are not healthy for China’s economic prospects. The zero-Covid policy is expected to continue further.
Also, China’s flat import data impacted the antipodean. China’s imports data remained flat at 0.3%, much lower than the estimates of 1%. A lower-than-projected Chinese imports data brought volatility in the kiwi counter.
Going forward, the US Gross Domestic Product (GDP) data will hog the limelight. As per the projections, the annualized GDP will improve significantly to 2.4% vs. a decline of 0.6% reported earlier. This could impact the kiwi bulls ahead.