NZD/USD May Rise on Upbeat Card Spending Data, Broader Sentiment

• New Zealand Dollar may rise if upbeat market sentiment continues in APAC trading

• Electronic card spending increases as Kiwi economy removes Covid restrictions

• NZD/USD eyes 0.72 level as resistance following bullish MACD crossover

TUESDAY‘S ASIA-PACIFIC FORECAST

The New Zealand Dollar moved slightly higher against the US Dollar overnight as Wall Street stocks closed slightly higher in New York’s Monday session. Material and energy stocks led the benchmark S&P 500 to a fresh record high close, with the recently passed $1 trillion infrastructure package and Fridays upbeat jobs report bolstering sentiment. A mostly positive corporate earnings season is helping temper valuation concerns amid higher Treasury rates.

Oil prices are on the move higher after the United States reopened air travel to fully vaccinated people. Unvaccinated travelers are also allowed with a negative Covid test. Airline stocks gained on Monday as investors expect the increase in travel to help boost revenues. The Biden administration is evaluating plans to address higher prices, with a potential release from the Strategic Petroleum Reserve still on the table. Bitcoin prices moved higher alongside other risk assets, with BTC/USD hitting a fresh record high of 67,803.

This morning, New Zealands October electronic card spending figure crossed the wires at 10.1% on a month-over-month basis. That is up from +1.0% in September. The upbeat figure comes as New Zealand gradually rolls back Covid restrictions. The island nation is set to ease travel restrictions further this month, removing quarantine rules for travelers from many neighboring Pacific countries.

Elsewhere, Japan‘s bank lending data for October crossed the wires at x.x% y/y, up/down from 0.6% in September. Australia’s October home sales rose x.x%, according to the Housing Industry Association. Traders are keenly awaiting the October employment report due out later this week, with analysts expecting the Aussie economy to add 50k jobs, according to a Bloomberg survey.

NZD/USD TECHNICAL FORECAST

NZD/USD is nearly unchanged to start the day after moving higher overnight. The 0.72 handle is a likely resistance level to the upside, while the 0.7100 level and rising 50-day Simple Moving Average serve as potential support levels. A cross above the center line in the MACD oscillator suggests upside energy may increase.

NZD/USD 8-HOUR CHART

Source: DailyFX