NZD/USD ignores downbeat NZ data, sluggish markets on the way to 0.7200
- NZD/USD edges higher following the previous day’s recovery from one-week low.
- NZ Business PSI drops to 58.4 in April.
- Geopolitics, covid updates troubles traders ahead of the key US Retail Sales.
NZD/USD eases from intraday top to 0.7183 following sentiment data from New Zealand amid the initial Asian session on Friday. Even so, the quote remains mildly bid daily while jostling with mixed catalysts.
New Zealand’s Business NZ PMI eased from 63.6 prior to 58.4 in April. Although being a second-tier data, the latest economics probe doubts over the Reserve Bank of New Zealand’s (RBNZ) rate hike chatters, recently backed by the ANZ report stating 70% odds favoring such a move by next May.
Elsewhere, Israel-Palestine tussles in Gaza escalates and the US Representative for the United Nations (UN) pushes for a meet on Sunday to tame the woes. Alternatively, the US Centers for Disease Control and Prevention (CDC) push for no mask-mandate for fully vaccinated people.
It’s worth mentioning that the US Jobless Claims’ slump to a 14-month low renewed market optimism the previous day, despite strong Producer Price Index (PPI) challenged the bulls.
Amid these plays, all three Wall Street benchmarks closed positive the first time in a week while the US 10-year Treasury yields eased 4.4 basis points (bps) to 1.64% by the end of Thursday’s US session. However, S&P 500 Futures stays pressured following that amid fresh hurdles for the risk-on mood.
Moving on, cautious sentiment is likely to weigh on the market’s mood as traders await the US Retail Sales for April, as well as the preliminary readings of the Michigan Consumer Sentiment Index for May. Given the Fed’s strong defense to easy money policy, not to forget the push for more signals to confirm reflation risk, each incoming American figure will be crucial for the market direction.
Technical analysis
50-day SMA and an ascending trend line from early April, respectively around 0.7135 and 0.7170, defend NZD/USD bulls. However, a 21-day SMA near 0.7205 guards the pair’s immediate upside.
Reprinted from FXStreet_id,the copyright all reserved by the original author.
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