Select Language

NZD/USD clings to gains near 0.5980 area after China's trade data, Fed decision awaited

Breaking news

NZD/USD clings to gains near 0.5980 area after China's trade data, Fed decision awaited

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.11.07 12:38
NZD/USD clings to gains near 0.5980 area after China's trade data, Fed decision awaited

update 2024.11.07 12:38

  • NZD/USD attracts some buyers on Thursday amid a modest USD weakness.
  • Elevated US bond yields should help limit the USD losses and cap the major. 
  • The markets react little to Chinese trade data as the focus remains on the Fed.

The NZD/USD pair builds on the previous day's bounce from the 0.5910 region, or over a three-month trough and gains some positive traction during the Asian session on Thursday. Spot prices stick to intraday gains near the 0.5975-0.5980 area amid a modest US Dollar (USD) downtick and move little following the release of Chinese trade data.

China's Trade Balance for October, in Chinese Yuan (CNY) terms, came in at CNY679.1 billion, expanding from the previous figure of CNY582.62 billion, led by an 11.2% YoY rise in exports. This comes on the back of signs that China's big stimulus push is helping improve business conditions, which, in turn, offers some support to the NZD/USD pair. 

Meanwhile, the USD ticks lower amid some profit-taking following the previous day's blowout rally to its highest level since July 30 touched in reaction to Donald Trump's comeback as the 47th President of the United States (US). This offers additional support to the NZD/USD pair, though a combination of factors should cap any meaningful upside. 

Investors turned optimistic amid hopes that Donald Trump's policies could push up growth and inflation. This could reduce the pace of interest rate cuts by the Federal Reserve (Fed), which remains supportive of elevated US Treasury bond yields, which, in turn, should act as a tailwind for the Greenback and keep a lid on the NZD/USD pair. 

Moreover, expectations that Trump will slam fresh tariffs on China, along with bets for more aggressive rate cuts by the Reserve Bank of New Zealand (RBNZ), should contribute to capping antipodean currencies, including the Kiwi. Traders might also opt to wait for the outcome of a two-day Federal Open Market Committee (FOMC) policy meeting. 

The Fed is scheduled to announce its policy decision later this Thursday and is widely expected to lower borrowing costs by 25 basis points (bps). Market participants, however, will scrutinize Fed Chair Jerome Powell's remarks for cues about the future rate-cut path, which might influence the buck and provide a fresh impetus to the NZD/USD pair.

Economic Indicator

Trade Balance CNY

The Trade Balance released by the General Administration of Customs of the People's Republic of China is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the CNY. As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market. In general, a high reading is seen as positive (or bullish) CNY, while a low reading is seen as negative (or bearish) for the CNY.

Read more.

Last release: Thu Nov 07, 2024 03:00

Frequency: Monthly

Actual: 679.1B

Consensus: -

Previous: 582.62B

Source: National Bureau of Statistics of China

 


Date

Created

 : 2024.11.07

Update

Last updated

 : 2024.11.07

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

GBP/USD: GBP has stabilized just above 1.25 - Scotiabank

UK data reports today were roundly disappointing, weighing on the Pound Sterling (GBP).
New
update2024.11.22 21:47

EUR/JPY Price Prediction: November bear trend unfolds

EUR/JPY staircases down from its Halloween peak as it unfolds in a short-term downtrend during November.
New
update2024.11.22 21:43

EUR/USD: EUR slumps on weak PMI data - Scotibank

The Euro (EUR) plunged in response to poor macro data reports earlier.
New
update2024.11.22 21:42

USD/CAD: CAD softer but outperforms most peers - Scotiabank

USD/CAD got caught in the crossfire of the hefty US Dollar (USD) advance against the European currencies earlier, rising quickly from the mid/upper 1.39s to an intraday high near 1.4020.
New
update2024.11.22 21:39

USD surges on weak European data - Scotiabank

The US Dollar (USD) is ending the week on a strong note. The DXY raced to a new, two-year high overnight in response to weak European data but has conceded a lot of those gains ahead of North American trading, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
update2024.11.22 21:34

Crude Oil tries to claim $70 as geopolitics supports price

Crude Oil price steadies on Friday and tries to claim the $70 level after surging over 4.5% so far this week, fueled by fresh escalation between Russia and Ukraine. Both countries are rushing to get the tactical upper hand ahead of possible resolution
New
update2024.11.22 21:14

The recovery rally in the Gold market is likely to take a breather - Commerzbank

The Gold price has also recovered more than half of its losses since the end of October and is once again trading at $2,700 per troy ounce, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
update2024.11.22 21:07

Swiss Gold exports reflect weak demand for Gold in Asia - Commerzbank

The Swiss Federal Customs Authority published data on Gold exports in October this week, Commerzbank's commodity analyst Carsten Fritsch notes.
New
update2024.11.22 20:59

Concerns about supply disruptions cause oil prices to rise - Commerzbank

Oil prices have risen noticeably over the past few days. Brent climbed to $74.8 per barrel in the morning, gaining almost 5% since the beginning of the week, Commerzbank's commodity analyst Carsten Fritsch notes.
New
update2024.11.22 20:56

USD/CNH: The major resistance at 7.2800 is likely out of reach - UOB Group

The US Dollar (USD) could to rise to 7.2630; the major resistance at 7.2800 is likely out of reach.
New
update2024.11.22 20:50

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel