CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Daily brief: NZD/USD unfazed after Kiwi retail sales ahead of Jackson Hole

Asia-Pacific markets may see a quiet trading session as traders prepare for Jackson Hole; New Zealand’s second-quarter retail sales fell on a quarterly and annual basis and NZD/USD trades below its 50-day SMA.

Thursday’s Asia-Pacific outlook

Asia-Pacific markets are set for a calm open after a low-volatility trading session overnight in New York. US stocks saw marginal gains as traders prepare for remarks from Federal Reserve Chair Jerome Powell on Friday from Jackson Hole. Treasury yields rose, indicating hawkish expectations for this weekend’s event. Equity traders have also stepped back over the past week in anticipation of the event.

According to China’s state broadcaster CCTV, the Chinese government is planning to release a package of economic measures aimed at underpinning growth and stability. The state media cited a meeting that included Premier Li Keqiang. The 19 new policy measures include raising policy financing tools by 300 billion yuan, among other policy tools. China’s CSI-300 fell nearly 2% on Wednesday.

The US dollar DXY Index was buoyed by higher Treasury yields. EUR/USD remained below parity and GBP/USD fell around 0.3%. APAC currencies, including the Australian dollar and New Zealand dollar, were also weaker against the USD. The second estimates for US second-quarter GDP growth and initial jobless claims data may influence the Greenback ahead of PCE inflation data and Mr. Powell’s speech. New Zealand’s second-quarter retail sales fell 3.7% on a year-over-year basis.

Copper and iron ore prices fell despite the supportive measures out of China coming to light. WTI and Brent crude oil prices rose as markets mull a potential OPEC production cut. However, that cut would likely come only if negotiations between Iran and the United States succeed, which would allow Iran’s oil to flow into global markets. A surprise decline in US stocks also helped support crude prices.

NZD/USD technical outlook

NZD/USD is holding above its 23.6% Fibonacci retracement level after an overnight drop. The short-term outlook remains bearish with prices tracking below the 50-day Simple Moving Average (SMA), while the RSI and MACD oscillators moderate below their respective midpoints. A break below the 23.6% Fib may threaten the July swing low at 0.6060.

NZD/USD daily chart

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.