NZD/USD looks for direction around multi-week high
- NZD/USD benefits from the market’s risk-on sentiment, stays close to monthly high.
- Trade headlines have lately been positive.
- A light economic calendar highlights news to remain as the key catalyst.
Given the broad improvement in the market’s risk-tone, coupled with an absence of negative headlines concerning the US-China trade deal, NZD/USD stays positive around six-week high while taking rounds to 0.6422 during the initial Asian session on Thursday.
Not only upbeat trade sentiment but reducing risk of no-deal Brexit also helped the market’s risk setting and helped the Kiwi overnight.
On the trade front, the United States’ (US) Trade Secretary Wilbur Ross and China’s Commerce Minister Zhong Shan were both positive and prepared to have a good trade deal in their latest public appearances.
Also supporting the momentum was the US Dollar (USD) weakness on the back of downbeat housing data at the home.
Given the absence of any major data from New Zealand, investors will keep an eye over Australia’s activity numbers to have a further direction. However, this won’t reduce the importance of trade headlines.
Technical Analysis
The 0.6448/53 area comprising September high and 100-day Exponential Moving Average (EMA) becomes the key for the pair as a break of which could recall 0.6500 back to the chart. Alternatively, the 50-day EMA level around 0.6374 seems to be the nearby support ahead of 0.6355.