NZD/USD: Bears attack 0.6300 amid poor NZ data, geopolitical worries
- NZD/USD plummets to the September 2015 levels as ANZ data reaffirmed calls of RBNZ’s future rate cuts.
- US-China tussles add weakness to the Antipodeans.
Not only downbeat domestic data-led speculations of the RBNZ’s future rate cuts but US-China pessimism also drags the NZD/USD pair that is an inch closer to 0.6300 mark ahead of Thursday’s European markets open.
During the early Asian session, the Australia and New Zealand Banking Group (ANZ) released August month’s Activity Outlook and Business Confidence data for New Zealand (NZ) that dropped from 5.0% and -44.3 priors to -0.5% and -52.3 respectively. With this, calls of the Reserve Bank of New Zealand’s (RBNZ) additional rate cuts in November firmed as the central bank recently showed readiness to take unconventional measures to balance the economy.
The news that the US and China are at loggerheads in the South China Sea increased the burden on the NZD/USD pair traders that are still struggling to find an end to the US-China trade war. Furthermore, China’s strong presence in Hong Kong is also inching the US and escalates the tension between the world’s two largest economies.
Looking forward, the US calendar seems a heavy one with the second estimate of the second quarter (Q2) 2019 Gross Domestic Product (GDP), Personal Consumer Expenditure Prices and Pending Home Sales up for release. Traders will also keep an eye over the trade/political headlines for fresh impulse.
Technical Analysis
While September 2015 lows surrounding 0.6236/43 can be considered as immediate support, pair’s additional weakness might not refrain from challenging 2015 low of 0.6084. On the upside, August 22 low near 0.6360 and a three-week-old descending trend-line at 0.6385 can keep the pair’s near-term advances limited.