NZD/USD fails to cheer trade-positive headlines, pulls back from five-week high

• NZD/USD witnesses downside pressure from a multi-week high.
• China’s Vice Premier Liu He conveys “concrete progress” over the US-China trade deal.
• Chinese House Price Index, New Zealand Credit Card Spending will offer intermediate moves.

Despite witnessing upbeat headlines from the South China Morning Post (SCMP), NZD/USD fails to extend the previous run-up while stepping back to 0.6375 during early Monday morning in Asia.

China’s SCMP recently covered upbeat quotes from the Vice Premier who crossed wires while visiting a virtual reality conference in Nanchang, in eastern China’s Jiangxi province. Mr. He spoke for the first time after returning from Washington. “The two sides have made substantial progress in many fields, laying an important foundation for the signing of a phased agreement. China will work with the United States on the basis of equal and mutual respect to address each other’s core concerns,” mentions the news.

The downside pressure might have been from the US Dollar (USD) recovery after the weekend political drama at the United Kingdom (UK) and the European Union (EU) seems to have played in the favor of the greenback. However, recently downbeat data keeps the expectations of another rate cut from the US central bank as policymakers enter the blackout period ahead of the October meeting.

Moving on, the September month House Price Index from China and Credit Card Spending data from New Zealand can entertain short-term traders while trade/Brexit headlines to keep the driver seat.

Technical Analysis

While a sustained break of 50-day Exponential Moving Average (EMA), around 0.6365 now, pushes buyers towards early-September lows nearing 0.6410, a downside break below the same can recall 0.6340 and 0.6300 back to the chart.