The Kiwi picks up bids to 0.70, following its bounce off 0.6986, during the early Tuesday’s Asian session. Mixed opinion news concerning the COVID-19 vaccine and stimulus seem to limit traders. Also tricky were the gloomy data at home and the US-China clashes.
New Zealand Building Permits dropped way below 1.5% downwardly revised prior to -18.2% during February. The readings mark the steepest slump in the housing data after April 2020. The NZDUSD prices paid a little attention to the data, considering the New Zealand government’s move to cut down speculative moves in the housing sector earlier in March.
Also negative for the NZDUSD is the geopolitical conflict between the US and China. Having been ruthlessly criticized for forming a group with the UK, Canada and European Union (EU), by Beijing’s diplomat, the US is up for discussing Taiwan Strait with Japan, per Nikkei. This may push China to retaliate and weigh on the market sentiment.
Additionally, a suspected $20 billion hedge-fund force-sale and month-end positioning are also among the major negatives for the mood. Otherwise, a $3.0 trillion infrastructure stimulus is having a mixed impact amid chatters of a tax hike whereas the US push for faster vaccinations and upbeat efficacy news from major vaccine producers favors the risk-on mood.
Considering an absence of major data/events, traders will keep their eyes on how markets consolidate after the stellar up-move from November 2020 to February 2021. In doing so, risk catalysts will be the key ahead of Friday’s US employment jobs report.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.