We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Tune in to @PeterHanksFX 's #webinar at 11:00 AM ET/3:00 PM GMT as he discusses levels to watch ahead of the Fed on #DJI & #DAX30. Register here: https://t.co/Rwbt9avERj https://t.co/9tZUtXkyNV
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.99%, while traders in France 40 are at opposite extremes with 81.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vdqp3cMcsc
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.42% Gold: 0.30% Silver: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/gSMOwxfTUc
  • Heads Up:🇺🇸 USD Business Inventories (AUG) due at 14:00 GMT (15min), Actual: N/A Expected: 0.2% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2019-10-16
  • Heads Up:🇺🇸 USD NAHB Housing Market Index (OCT) due at 14:00 GMT (15min), Actual: N/A Expected: 68 Previous: 68 https://www.dailyfx.com/economic-calendar#2019-10-16
  • EU Council President Tusk says conditions surrounding Brexit should become clear within hours $GBP $EUR
  • US Equities Update (Wednesday open): $DJI -0.19% $SPX -0.26% $NDX -0.40% $RTY -0.01% $VIX +1.77%
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.22% US 500: -0.18% Wall Street: -0.20% France 40: -0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/XAt5DxbQrb
  • RT @economics: China unexpectedly injects $28 billion of cash as growth slows https://t.co/IOXaOYqYZM
  • RT @business: China threatens to retaliate if U.S. passes Hong Kong bill https://t.co/SOMwnY123x
New Zealand Dollar Eyes US-China Trade War After In-Line GDP Data

New Zealand Dollar Eyes US-China Trade War After In-Line GDP Data

2018-06-20 23:15:00
Ilya Spivak, Sr. Currency Strategist
Share:

TALKING POINTS - NEW ZEALAND DOLLAR, GDP, RBNZ, TRADE WAR, CHINA

  • New Zealand Dollar little-changed after in-line Q1 GDP data
  • US-China trade war news flow likely to be in focus from here
  • Critical NZD/USD support remains in the 0.6781-0.6862 area

Join a DailyFX webinar to track the impact of key economic data on currency trends!

The New Zealand Dollar was little changed as first quarter GDP data crossed the wires in line with economists’ forecasts. Output added 0.5 percent in the three months to January, pushing the trend growth rate to 2.7 percent on-year. That matches the four-year low set in the third quarter of 2017.

New Zealand Dollar vs US Dollar chart - 5min

The outcome probably did little to alter established RBNZ policy bets, explaining the post-data standstill. As it stands, the markets are pricing in a meager 11.6 percent probability of an interest rate hike in 2018. Bank Bill futures imply that the next increase will come late in the fourth quarter of next year.

This may put US-China trade war concerns back in focus. The frequently sentiment-linked currency has suffered along with most “risky” assets amid a heated exchange between Washington and Beijing in recent days. Soundbites from officials on both sides of the dispute may remain a source of near-term volatility.

Background - A Brief History of Trade Wars, 1900-Present

NZD/USD TECHNICAL ANALYSIS

Looking at overall technical positioning, prices are testing long-standing range support in the 0.6781-0.6862 area that has bedeviled sellers since late December 2016. A daily close below this juncture is needed to make the case for lasting downside follow-through. Near-term inflection point resistance is at 0.6965, with a reversal above that eyeing a retest of the June 6 high at 0.7060.

New Zealand Dollar Eyes US-China Trade War After In-Line GDP Data

NZD/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.