NZD/USD: New Zealand trade data, PM Ardern keep buyers hopeful around 0.6050
- NZD/USD bounces off 0.6040 after upbeat catalysts.
- New Zealand (NZ) exports are up 3.3%, registers a 20% rise in offerings to China.
- NZ PM Ardern cites strategic advantage of the active government.
- US data, virus/trade updates will be the key moving forward.
Following its U-turn from 0.6040, NZD/USD takes the bids to 0.6055 in early Wednesday’s trading. The pair’s latest catalysts seem to be the upbeat New Zealand trade data and comments from PM Jacinda Ardern.
Read: New Zealand’s exports rose 3.3% YoY in three months ended April 29
As per the provisional readings of February-April trade data from Stats NZ, New Zealand’s total exports to all countries were up 3.3% whereas exports to the key customer China rose 20%.
Earlier, NZ PM Ardern said, “The early and fast government response to the virus outbreak has helped the economy be positioned to rebuild more quickly than many others globally. That is our safe-haven strategic advantage."
It should also be noted that the hopes of the US economic restart, as hinted by US President Donald Trump, offered the early-day help to the kiwi pair in extending Tuesday’s recovery gains from 0.6033.
Even so, the market’s risk-tone seems to dwindle amid on-going coronavirus (COVID-19) worries as well as downbeat activity numbers from the global majors. As a result, S&P 500 Futures drop 0.15% to 2,854 by the time of writing.
Looking forward, a lack of major data in Asia will keep traders directed towards US economics, led by today’s ADP Employment Change, for fresh impulse. However, any more detail concerning the economic restart as well as virus updates could offer intermediate moves.
Technical analysis
While 0.6100 acts as the immediate resistance, buyers are targeting April top of 0.6176 during the further upside. Alternatively, a confluence of 50-day SMA and an ascending trend line since March 23, 2020, seems to limit the pair’s immediate downside around 0.6035/40, a break of which can recall April 23 low of 0.5910.