New Zealand Dollar, NZD / USD, Consumer Confidence, Building Permits, Covid – Call Points
- Eyes in Asia-Pacific are close for the week, with Chinese stocks remaining lower
- New Zealand economic publications show mixed data for June and July
- NZD / USD rises above the resistance of the falling wedge pattern
Friday ‘s outlook for Asia – Pacific
Asian and Pacific markets may trade on brighter signs on Friday after a positive momentum Wall Street the session saw gains in key indices. Benchmark S&P 500 rose to a fresh record. The endangered atmosphere stretched into the shelter US dollar, while risk sensitive New Zealand Dollar against major currencies. The mood in Chinese stocks remains weak, despite deeper losses this week.
US gross domestic product (GDP) exceeded 6.5% overnight, exceeding expectations by 8.5% aq / q. This, along with this week’s stupid Fed language, could be responsible for much of Greenback’s weakness. It is also likely to help allay fears about the United States’ accelerated austerity schedule.
New Zealand July ANZ Roy Morgan’s consumer confidence was released this morning, down from last month. This figure hit the wires by 113.1, compared to June 114. Bbuilding permits also printed at 3.8% from May own -2.8% result. In general, data on the Kiwi economy show a mixed picture. Later today, Japan will report unemployment and retail sales in June.
At the same time, the Asia-Pacific region continues to struggle with the increase in Covid cases, which has led to the closure of several key economies. Australia’s A record 239 cases were registered in New South Wales (NSW) on Thursday. According to health policy experts, the closure could last until September and maybe later. See mai this means a slowdown in growth in the third quarter.
NZD / USD technical outlook:
In the recent strength of the New Zealand dollar against the US dollar, currency pair trading is above the declining trend line that forms the upper limit of the falling wedge pattern. As a result, prices may rise further, as the pattern usually causes potential breakage. With a positive RSI divergence, the short-term outlook appears to be on the upside. However, retraction may occur to re-test resistance.
NZD / USD8-hour chart
The chart has been created TradingView
New Zealand Dollar Trading Resources
– Written by Thomas Westwater, DailyFX.com analyst
Be in touch Thomas, use the comments section or below @FxWestwaterTwitter