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1 Sep 2015
NZD/USD: Bulls back in control, NZ & China data underpins
FXStreet (Mumbai) - NZD/USD rebounded sharply during the Asian session, recovering a part of yesterday’s steep losses, as the New Zealand dollar received fresh impetus from the surprisingly positive NZ terms of trade data while a touch better than expected Caixin China’s PMI report also supported.
NZD/USD extends beyond 0.6350
Currently, the NZD/USD pair trades 0.62% higher at 0.6379, easing-off fresh session highs reached at 0.6388 in last hours. The New Zealand dollar staged a solid comeback against its American rival after the Kiwi was boosted by rising export prices as reflected by the NZ terms of trade figures.
New Zealand's terms of trade rose 1.3% last quarter after rising a revised 1.2% in the March quarter, according to Statistics New Zealand. The market predicted a 1.9% decline in the terms of trade last quarter. New Zealand's export prices rose 2.1% in Q2, led by a 6% rise in dairy prices.
Moreover, slightly better revision of the China’s PMI gauge published by Caixin also lifted the sentiment around the Kiwi. China is New Zealand’s top export partner. the Caixin China manufacturing PMI was revised up from 47.1 to 47.3 in August, however came in below the 47.8 reading booked in July.
Looking ahead, markets now await the RBA rate decision due to be announced shortly while the upcoming macro data including the US ISM manufacturing PMI and GDT price index from New Zealand will be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6400 levels and above which it could extend gains 0.6481 (Aug 31 High) levels. To the downside immediate support might be located at 0.6347 (Today’s Low) below that at 0.6316 (Aug 31 Low).
NZD/USD extends beyond 0.6350
Currently, the NZD/USD pair trades 0.62% higher at 0.6379, easing-off fresh session highs reached at 0.6388 in last hours. The New Zealand dollar staged a solid comeback against its American rival after the Kiwi was boosted by rising export prices as reflected by the NZ terms of trade figures.
New Zealand's terms of trade rose 1.3% last quarter after rising a revised 1.2% in the March quarter, according to Statistics New Zealand. The market predicted a 1.9% decline in the terms of trade last quarter. New Zealand's export prices rose 2.1% in Q2, led by a 6% rise in dairy prices.
Moreover, slightly better revision of the China’s PMI gauge published by Caixin also lifted the sentiment around the Kiwi. China is New Zealand’s top export partner. the Caixin China manufacturing PMI was revised up from 47.1 to 47.3 in August, however came in below the 47.8 reading booked in July.
Looking ahead, markets now await the RBA rate decision due to be announced shortly while the upcoming macro data including the US ISM manufacturing PMI and GDT price index from New Zealand will be closely watched.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.6400 levels and above which it could extend gains 0.6481 (Aug 31 High) levels. To the downside immediate support might be located at 0.6347 (Today’s Low) below that at 0.6316 (Aug 31 Low).