NZD/USD remains under pressure around 8-week low amid absence of fresh catalysts
- Traders keep emphasizing Friday’s NFP data amid lack of new directives at the start of the week.
- Prices struggle near February lows with 0.6720 and 0.6700 being in the eye of the sellers.
NZD/USD trades little changed near 0.6230 at the start of the Asian session on Monday. The Kiwi pair dropped to a fresh eight-week low on Friday after upbeat employment data from the US. Lack of fresh catalysts during the weekend pushed investors to carry earlier bias forward. Headlines concerning the trade negotiations between the US and China, coupled with the US factory orders, likely grabbing market attention for the rest of the day.
With the March month US nonfarm payrolls recovering back to 196K from upwardly revised 33K prior, the US Dollar (USD) traders cheered the strength of the US employment sector. As a result, the NZD/USD pair declined to the lowest levels since February 12 after the release.
On the other hand, trade deal negotiations were also going positive between the US and China after Chinese delegates comprised of Vice Premier Liu He visited Washington. Both the nations’ lawmakers will continue to discuss issues forward for a final announcement concerning when the US President Donald Trump and his Chinese counterpart Xi Jinping meet to announce the much-awaited trade deal.
During early Asian morning, traders continued extending Friday moves forward due to lack of big catalysts during the weekend. The same is the story of Monday’s economic calendar where the US factory orders for February are the only reading up for release. Market consensus suggests the order growth is likely to shrink by -0.6% versus +0.1% prior growth.
NZD/USD Technical Analysis
February month low near 0.6720 can act as immediate support for the NZD/USD pair ahead of highlighting 0.6700 round-figure and 0.6690 rest-points. However, break of 0.6690 might not hesitate to fetch the quote around 0.6650.
On the upside, 0.6750 and 0.6800 can limit the pair’s immediate advances ahead of highlighting 100-day simple moving average (SMA) near 0.6815.