NZD/USD seesaws near 0.6550 amid lack of fresh catalysts
- USD weakness helps Antipodeans.
- Lack of data shifts market attention to qualitative news reports.
With the fewer directives to guide early-week moves, the NZD/USD pair trades near 0.6550 at the beginning of the Asian session on Monday. The gained traction off-late after the US Dollar (USD) weakness helped built overall market sentiment towards commodity-linked currencies.
The greenback was on its downturn recently after scheduled data flashed soft outcomes, the latest one was durable goods orders.
As a result, the Kiwi crossed two-month-old descending trend-line resistance of Friday and has been holding the gains since then.
The economic calendar has no major data/events to offer today as the US markets are closed for Memorial Day.
However, traders might not ignore details from the US-China trade developments, if any. Both the world’s largest economies are on the war of words and little progress has been made after the US President Donald Trump levied fresh tariffs on Chinese goods and the talks stalled.
Recently, Chinese President Xi Jinping asked for global technology cooperation at the China International Big Data Industry Expo after the US blocked Huawei.
Technical Analysis
Having breached immediate resistance-line (now support), the pair can aim for 0.6585 and 0.6610 numbers to the north whereas 0.6660 and 50-day simple moving average (SMA) level of 0.6690 could be on the buyers’ radar then after.
Should the quote dip back beneath 0.6515 support, 0.6480 and 0.6460 may please sellers ahead of highlighting October 2018 low near 0.6425.