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  • NZD/USD: some solace found in US/China scheduled talks end of the month.
  • There is an argument for the upside while indicators have stretched into oversold readings.

NZD/USD has moved into a period of consolidation moving along sideways in the higher end of the 0.65 handle with eyes on a break above the 0.66 handle as markets find some solace on less negative headlines. Currently, the bird is trading at .6586 at the time of writing, having made a recovery high to 0.6608 fro a low of 0.6555

China’s Ministry of Commerce announced it will send Vice Commerce Minister Wang Shouwen to the US to engage in low-level trade talks at the end of August the dates are scheduled around a very busy looking time for markets with the FOMC minutes and also the Jackson Hole which is likely going to focus on the strength of the US dollar – all of this is due between the 22nd-25h August.  

Tariffs implemented by both sides

As noted by analysts at ANZ, “to date, a total of US$34bn in tariffs has been implemented by both sides, with another $16bn ready for implementation on 23 August. The US has threatened another $200bn (around 40% of total US imports from China), with China’s retaliation to that another $60bn (around 45% of total imports from the US).”

NZD/USD levels

Support is seen at 0.6510 below the lows of 0.6555 today while resistance is located at 0.6670. There is an argument for the upside while indicators have stretched into oversold readings and bulls can target resistance at 0.6670. A continuation would look to 0.6860 and 0.6920 as the June high can be had. The 200-month moving average resistance is at 0.7020. However, on the downside0.6510/50 guards a run to the 0.6470s and below there, 0.6240 remains as a big level that protecting the double bottom lows at 0.5910 (2004 and 2006 levels).