The New Zealand dollar saw a second straight day rally as of 4:00 p.m. in Sydney after U.S. had shown a weaker labour market than anticipated, followed by some retreats in the U.S. dollar in the past two days.
It seems there is a negative correlation between U.S. dollar index and trade war tension, meaning that the more tensive China-US trade dispute would push up the U.S. dollar while dragging down the equity markets. Under such circumstances, China’s President Xi Jinping gave a speech to send a positive signal to the market since he backs globalization and the opening up of China’s market in the opening ceremony of Boao Forum, calming the nerves on trade disputes a lot.
Intraday gains in the NZD/USD pushed the pair above the descending price channel and may have a further rise towards a major resistance ahead around 0.7436, which is Feb 16’s high. Otherwise, if the pair retreats the upper channel line would be a support level to prevent its further loss.
Coupled with other indicators’ analysis, we can find that the MACD just started to move upwards and the Relative Strength Index shows higher lows in the past few weeks, suggesting a bullish signal for buyers at this stage.
Chart 1: NZD/USD Daily
Thank you for inquiry ACY.
Your application has been received, and we will arrange an account manager within 24 hours to contact you! We wish you have pleasant trading experience!
