NZD/USD: On the defensive despite uptick in NZ business PMI

• New Zealand’s business PMI ticked higher in April but missed estimates.
• NZD/USD was rejected at key descending trendline on Thursday, courtesy of trade tensions and upbeat US data.

Expansion in New Zealand’s manufacturing sector picked up pace in April, the data released earlier today showed.

The Bank of New Zealand’s-Business New Zealand’s seasonally adjusted performance of manufacturing index rose to 53.00 from the upwardly revised March reading of 52.00.

So far, however, that has failed to put a bid under the NZD/USD pair, possibly because the markets were expecting a bounce to 54.5.

The heightened trade tensions following the US’ decision to block China’s Huawei from accessing the US markets and suppliers may be adding to bearish pressures around the NZD.

The Kiwi is currently trading in the red at 0.6532, having faced rejection at the trendline connecting March 26 and April 17 highs on Thursday.

The greenback found bids in the America session after the Philadelphia Fed Manufacturing index or May rose to a four-month high of 16.6 from April’s reading of 8.5.

Pivot points