- NZD/USD steady into Asian open awaiting Trump’s tariff announcements.
- NZD/USD has been following the Aussie that trades as a proxy to Chinese risk.
NZD/USD is currently trading at 0.6578, down from a high of 0.6590 and up from 0.6538 as the markets get set for announcements from Trump with respect to his proposed list of Chinese $200b worth imports where he intends to impose fresh tariffs.
NZD/USD has been following the Aussie that trades as a proxy to the events surrounding the EM-FX and China. The danger here is that China said they will not be entering talks with the US should they impose further tariffs.
China risks
“In the past few minutes, President Trump has announced that a statement on Chinese trade tariffs will be made after the US market close today (so effectively any time after 8am NZT). Risk currencies have turned a little lower on this news, while the yen has strengthened. Markets will be focused on the broadness of goods targeted, the tariff rate, and of course any response from China,” analysts at ANZ explained.
“At the risk of sounding like a broken record, the NZD sits here at the whims of USD moves and developments on global trade. The kiwi strengthened modestly overnight, but we don’t expect it to lift too far before selling pressures emerge again,” the analysts added.
NZD/USD levels
Support is located at 0.6540 and resistance is at 0.6640. Bulls ran into resistance and the pair is in a phase of consolidation. RSI at 43 and neutral while bears target a break of the 0.65 handle to confirm the downside’s continuation – target is 0.6350.
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