- NZD/USD has been chewed up by the bears from 0.6595 past Asian highs and fell all the way back to 0.6542 for an NY close of 0.6550 as trade war against escalates once again.
- NZD/USD is currently trading at 0.6547 from a session high of 0.6555.
It appears to be a sell-on rallies and its all about trade wars yet again. Analysts at ANZ explained that reports over the weekend suggested that China’s authorities may turn down the offer of trade talks with the US, doubting that President Trump, at least, has any real intention of scaling back the tariff war, given reports that USD200bn of new tariffs will be announced this week.
A new front opened up in the dataflow on Friday – consumers
The analysts at ANZ explained also that the University of Michigan confidence survey reported that “the largest problem cited on the economic horizon involved the anticipated negative impact from tariffs:
“Concerns about the negative impact of tariffs on the domestic economy were spontaneously mentioned by nearly one-third of all consumers in the past three months, up from one-in-five in the prior four months.” While US inflation indicators in the past week have surprised on the downside, the rumoured wide-ranging 10% tariffs will give US consumer inflation quite the boost, as they would cover half of all imports from China. The odds of the Fed having to respond in time will be a key question for markets going forward.”
NZD/USD levels
Support 0.6470 is at and resistance is at 0.6640. Bulls ran into resistance and the downside is resuming. RSI at 55 is neutral and bears target a break of the 0.65 handle to confirm the downside’s continuation – target is 0.6350.
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