NZD/USD retraces latest rally amid lack of fresh catalysts
- Global rush for commodities and welcome data at home stretched Kiwi recovery previously.
- Absence of data at home pushes traders to wait for the US data, political for fresh impulse, which in turn triggers the recent pullback.
Having benefitted from global central bank put and upbeat GDP data at home, the NZD/USD pair retraces latest gains while taking the rounds to 0.6580 at the start of Friday’s Asian trading session.
Not only the US Federal Reserve (Fed) but the Bank of Japan (BOJ), the Reserve Bank of Australia’s (RBA) Governor and the Bank of England (BOE) were all singing the same bearish song.
As a result, global traders’ hunt for yields pushed them towards commodities, which in-turn helped Antipodeans. The US 10-year treasury yield slumped beneath 2.0% for the first time since November 2016 but recovered back to 2.023% by the press time.
Other than support form commodities, New Zealand’s first quarter (Q1) gross domestic product (GDP) data also pleased the Kiwi buyers. The GDP growth grew past 2.4% forecast to match upwardly revised prior of 2.5% on a YoY basis while remaining unchanged at 0.6% growth on a quarterly basis.
Amid growing calls of the global recession, global media showed little concerns for the US-China trade developments whereas the absence of any major data from either the US or New Zealand also restricts the catalysts for Kiwi’s latest momentum.
Traders might concentrate on the US data during the later part of the day for fresh impulse. That includes monthly prints of Markit Purchasing Manager Indices (PMIs) for June, Existing Home Sales (May) and a speech from the Fed’s Vice Chair Richard Clarida.
Technical Analysis
While 50-day simple moving average (SMA) level of 0.6595 acts as immediate upside barrier, pair’s slip beneath 21-day SMA figure of 0.6565 might not refrain from calling 0.6510 and 0.6480 back to the chart. Should the pair crosses 0.6595, 0.6610 and current month top near 0.6682 could become buyers’ favorites.