NZD/USD clings to modest gains above 0.66, ignores US-China trade headlines

• ANZ Commodity Price Index stays unchanged in May.
• DXY posts small losses following Wednesday rebound.
• Trump says tariffs on China could be raised is necessary.

After closing the third straight day in the positive territory on Wednesday, the NZD/USD pair has gone into a consolidation phase and was last seen trading in the upper half of its daily range near 0.6630, adding 0.15% on a daily basis.

Earlier today, the data published by the ANZ National Bank showed that the Commodity Price Index in May stayed unchanged following April's 2.6% increase and came in line with the market expectation. In the second half of the day, trade balance and weekly jobless claims data from the U.S. will be looked upon for fresh impetus. More importantly, Dallas Fed President Kaplan and NY Fed President Williams speeches will be watched closely for fresh clues regarding possible Fed rate cuts in the second half of the year.

Meanwhile, President Trump today said that tariffs on an additional $300 billion worth of Chinese imports could be raised if it was necessary while repeating that talks with China on trade were ongoing. On the other hand, the Chinese Commerce Ministry in a statement said that the U.S. needed to show "sincerity" in talks and correct the wrongdoing. Nevertheless, the pair largely ignored those headlines and changes in the USD's market valuation amid rate cut expectations could continue to impact the pair's price action. At the moment, the DXY is up 0.05% on a daily basis at 97.25.

Technical levels to consider

The pair could face the initial support at 0.6610 (50-DMA) ahead of 0.6570 (Jun. 4 low) and 0.6500 (psychological level). On the upside, resistances align at 0.6665 (Jun. 5 high), 0.6720 (100-DMA) and 0.6740 (200-DMA).