NZ, U.S. Dollars Advance After Signing Of Phase 1 Trade Deal
January 15 2020 - 9:28PM
RTTF2
The New Zealand and the U.S. dollars climbed against their major
counterparts in the Asian session on Thursday, as sentiment lifted
up after the completion of the first phase of the U.S.-China trade
deal, aimed to diffuse their trade conflict.
The deal calls for China to purchase $200 billion worth of U.S.
goods over the next two years, including up to $50 billion worth of
agricultural products.
The deal also purportedly addresses issues such as intellectual
property theft, forced technology transfers and currency
manipulation by China.
In exchange, the U.S. will scrap a new round of tariffs and cut
tariffs on approximately $120 billion worth of Chinese goods in
half to 7.5 percent.
Trump noted a 25 percent tariff on $250 billion worth of Chinese
imports will remain in place in order to give the U.S. leverage as
the two countries enter into phase two negotiations.
Data from Statistics New Zealand showed that New Zealand overall
credit card spending fell a seasonally adjusted 0.6 percent on
month, after climbing a downwardly revised 0.9 percent in
November.
The value of retail credit card sales fell 0.8 percent after
jumping 2.6 percent in the previous month.
The kiwi advanced to a 3-day high of 0.6637 against the
greenback from Wednesday's closing value of 0.6617. The kiwi is
seen finding resistance around the 0.68 mark.
The kiwi approached a 2-day high of 72.97 against the yen from
yesterday's trading close of 72.70. The next possible resistance
for the kiwi is seen around the 74.00 level.
The NZ currency rose to 2-day highs of 1.6806 against the euro
and 1.0408 against the aussie, compared to yesterday's closing
quotes of 1.6851 and 1.0430, respectively. If the currency rises
further, it may locate resistance around 1.65 against the euro and
1.03 against the aussie.
The greenback reached as high as 109.99 against the yen and held
steady thereafter. On the upside, 112.00 is possibly seen as the
next resistance level for the greenback.
Reversing from its early lows of 1.1158 against the euro and
0.9636 against the franc, the greenback gained to 1.1147 and
0.9647, respectively. The greenback may locate resistance around
1.10 against the euro and 0.98 against the franc.
The greenback edged up to 1.3048 against the loonie and 0.6900
against the aussie, from its previous low of 1.3035 and a 3-day low
of 0.6919, respectively. The greenback is likely to locate
resistance around 1.32 against the loonie and 0.67 against the
aussie.
In contrast, the greenback held steady against the pound, after
falling a weekly low of 1.3057 at 5:15 pm ET. The pair had closed
yesterday's deals at 1.3037.
Looking ahead, European Central Bank's accounts of the monetary
policy meeting of the Governing Council held on December 11-12 are
due at 7:30 am ET.
U.S. retail sales and U.S. export and import prices for
December, weekly jobless claims for the week ended January 11, the
U.S. business inventories for November and NAHB housing market
index for January are scheduled for release in the New York
session.
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