NZD/USD seesaws near 0.6600, all eyes on Washington meet

  • Traders await details from Washington amid mixed signals from the US President Trump and other media.
  • Electronic card retail sales are on the domestic release list.

NZD/USD is taking the rounds near 0.6600 as traders remain nervous for the outcome from Washington meeting at the beginning of Asian trading on Friday.

The Kiwi performed better than other antipodeans, namely the Australian Dollar (AUD), on Thursday as comments from the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr offered a bit relief to the markets after previous day’s rate-cut.

Adding to the pair’s pullback could be the overall US Dollar (USD) pullback and the nation’s comparatively loose ties with China that Australia.

Markets have been waiting for final words from the US-China trade negotiation table since recently after the US President Donald Trump gave slightly upbeat signals to the likeliness of a trade deal between the world’s two biggest economies.

However, tensions still remain alive as the Reuters’ report said that sources familiar with the matter said that China hasn’t respected the US demands in its 150-page draft agreement.

While there prevails little from New Zealand economic calendar to observe expected electronic card retail sales, developments surrounding the trade agreement will be in the limelight. New Zealand electronic card retail sales (MoM) for April could reverse previous -0.3% contraction with +0.8% gain.

Technical Analysis

The six-week-old descending trend-line at 0.6630 could limit the immediate upside of the pair, a break of which can recall 0.6685 and 0.6700 whereas 200-day simple moving average (SMA) near 0.6715 could be of importance then after.

Meanwhile, a downside break of 0.6570/80 support-zone seems to open the door for the pair’s decline to 0.6510, 0.6470 and October 2018 low near 0.6420.

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