NZD/USD on the defensive near 0.6750 amid softer risk tones

• Depressed amid US dollar strength and risk-off markets on growth worries.
• US-China trade developments and Fed’s Beige book in focus.

The USD bulls regain poise in early Asia trading, sending the NZD/USD pair back into the red zone near the midpoint of the 0.67 handle.

The renewed US-China trade concerns combined with ongoing US government shutdown knocked-off the appetite for the risk assets such as the US stocks, the Kiwi etc. The worries over US-China trade spat flared up after the US Commerce Secretary Wilbur Ross noted that the US was miles and miles’ from resolving China trade issues. Meanwhile, the US Senate lacked votes to fund President Trump’s border wall, leaving the shutdown to continue.

Markets flocked to safety bets such as the US dollar amid market unrest and uncertainty, boosting the USD index to three-week tops of 96.66 levels. However, the downside appears cushioned amid upbeat New Zealand’s visitor arrivals data and a rally in oil prices. Oil prices jumped nearly 1% on Thursday amid potential US sanctions on Venezuela.  

Looking ahead, the sentiment on the global equities and the USD price-action will influence major while traders keep an eye on the US-China trade developments and Fed’s Beige book.

NZD/USD Technical Levels