NZD/USD: Buyers cheer trade optimism at 2.5-month high, aim for 200-D EMA

• Trade deal optimism, sluggish second-tier US data keep pleasing the NZD/USD buyers.
• Few economic data adds importance to the G20 headlines.

Rising optimism for a positive trade chat between the US and China recently offered additional strength to the NZD/USD pair buyers that are now dominating at a 10-week high, near 0.6700, at the start of Friday’s Asian session.

While positive statements from the US and Chinese media initially spread optimism surrounding the US-China trade deal at the end of Saturday’s dinner, comments from the White House Adviser Lary Kudlow that the US doesn’t have any preconditions for China increased chances of successful trade talk.

Adding to the Kiwi pair’s strength could be sluggish Pending Home Sales and Initial Jobless Claims data from the US.

However, the bulls were challenged as China is said to be seeking withdrawal of sanctions from Huawei, which the US is unlikely to support, during the trade talk.

Looking forward, lack of data could keep highlighting G20 developments where investors will seek further clues on how best it is to expect a trade deal hint from Saturday’s key talk.

Technical Analysis

The 200-day exponential moving average (200-D EMA), at 0.6720, acts as an immediate upside resistance for the pair amid overbought levels of 14-day relative strength index (RSI) likely questioning the quote’s further increase, if not then mid-April top near 0.6785 could lure the bulls.

On the downside, early-month high near 0.6682 seems nearby support, a break of which can 100-D EMA level of 0.6661 and 0.6630 back to the chart.