- The bird sunk to fresh year-to-date lows on trade war noise.
- NZD/USD is currently trading at 0.6568 between the early Asian session’s range of 0.6564 and 0.6570.
Trade headlines were the theme again overnight and the bird continued to bleed when NY came online whereby the weekend tit for tat threats that trickled into markets opening Europea and the US sparked further safe-haven buying after China announced it will retaliate against US tariffs by imposing its own tariffs on 1st June. China is said to raise import tariffs on 2493 items – amounting to $60 billion worth of US goods ranging from 5% to 25% starting June 1st.
“The kiwi will continue to struggle in the current environment,”
analysts at ANZ Bank noted.
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Moody’s warns consequences of a breakdown in US.-China trade talks
NZD/USD levels
The bird remains on the back foot although daily Stochastics are neutralising. However, the overnight trade left a bearish engulfing stick when compared to last week’s 9th May stick and bears eye the 6526 aforementioned low on a break of the 78.6% Fibo of the aforementioned range, at 6561, a few pips off the recent lows. On the upside, with the shorter term stochastics in the red and lower ATR, a pullback to 6580 would be a 50% mean reversion of the overnight range so far.
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