logo
Plus   Neg
Share
Email

NZ, U.S. Dollars Advance After Signing Of Phase 1 Trade Deal

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT
>