New Zealand Dollar Trades Higher On Trade Hopes

The New Zealand dollar traded higher against its most major counterparts in the Asian session on Tuesday, as most Asian shares rose amid renewed optimism that the U.S. and China will sign the first phase of a trade deal by the middle of November following comments from President Donald Trump and Chinese Vice Premier Liu He.

Trump said that trade talks are progressing between Beijing and Washington and there is chance to seal the mini-deal next month.

U.S. Trade Representative Robert Lighthizer said the government is aiming to finalize a “Phase 1” deal with China at the Asia-Pacific Economic Cooperation meetings in Chile.

Further underpinning sentiment were comments from White House economic adviser Larry Kudlow, who said that tariffs scheduled for December could be removed if negotiations progress.

The kiwi appreciated to near a 6-week high of 0.6436 against the greenback and held steady thereafter. The next possible resistance for the kiwi is seen around the 0.66 mark.

The NZ currency firmed to near a 3-month high of 69.96 against the yen and held steady thereafter. The kiwi is likely to challenge resistance around the 71.00 mark.

The kiwi spiked up to a 6-day high of 1.0683 against the aussie and moved sideways in subsequent trading. The kiwi is likely to find resistance around the 1.045 level, if it rises again.

The kiwi rose to near a 3-week high of 1.7331 against the euro from yesterday’s closing value of 1.7394. The kiwi is seen finding resistance around the 1.71 level.

Looking ahead, U.K. public sector finance data for September is due in the European session.

Canada retail sales for August and U.S. existing home sales for September will be featured in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com