New Zealand Dollar at Risk as AMZN, AAPL Earnings Miss. NZD/USD Eyes Resistance
What's on this page
New Zealand Dollar, NZD/USD, Wall Street, Tech Earnings, AUD/USD, RBA – Talking Points
- New Zealand Dollar gained as rosy market sentiment boosted pro-risk currencies
- However, dismal Amazon and Apple earnings offer sour tone for Friday Asia trade
- Australian Dollar eyeing retail sales after RBA withheld from keeping YCC in check
Thursday’s Wall Street Session
The sentiment-linked New Zealand Dollar gained on Thursday as Wall Street tech stocks closed at a fresh record high, with the Nasdaq 100 index rising 1.15%. However, lackluster earnings from Amazon and Apple crossed the wires after the closing bell, which saw both stock prices sink in after-hours trading. That downside price action may extend into Friday’s New York session.
Despite the gloomy figures from Amazon and Apple, corporate earnings on a broader scale remain mostly positive. That said, other warning signs over the global economic rebound’s strength are coming into question. United States third-quarter GDP growth came in at 2.0% overnight, which was well below the consensus analysts’ estimate of 2.7%, and down sharply from 6.7% in the previous quarter.
The disappointing US economic data sent front-end Treasury yields falling, likely cooling hawkish Federal Reserve monetary policy expectations. This and the generally rosy mood on Wall Street weakened the haven-linked US Dollar. Meanwhile, the Euro outperformed its major peers in the aftermath of a more hawkish-than-expected European Central Bank monetary policy announcement.
Friday’s Asia Pacific Session Outlook
Nasdaq 100 and S&P 500 futures are pointing lower heading into Friday’s Asia-Pacific trading session. This is weakening the sentiment-linked Australian and New Zealand Dollars. AUD/USD will be closely watching Australian retail sales after the RBA withheld from keeping the 3-year yield target in check yesterday. This has further reduced dovish policy bets, and a strong retail sales print could amplify that dynamic ahead of next week’s RBA rate decision.
NZD/USD Technical Forecast
Recent gains in NZD/USD have kept it around the 0.72 psychological level after the New Zealand Dollar broke above a bullish Falling Wedge chart formation. Negative RSI divergence has emerged, showing fading upside momentum. A turn lower may place the focus on the 20- and 50-day Simple Moving Averages. A bullish crossover emerged recently, offering an upside technical bias. Further gains may place the focus on the 0.7268 – 0.7315 inflection zone.
NZD/USD Daily Chart
Chart created with TradingView
--- Written by Thomas Westwater and Daniel Dubrovsky, Analyst and Strategist for DailyFX.com, respectively
To contact Thomas, use the comments section below or @FxWestwater on Twitter
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
Trade Smarter - Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.