- Angsty markets see the Kiwi accelerating losses as the Asian session sees risk appetite souring.
- A sparce calendar greets Kiwi traders this week, with China liquidity on holidays.
The NZD/USD continues to trade to the downside in thin Wednesday markets, ticking into 0.6570 after Tuesday’s similar slide as the Kiwi makes its way down the charts as broader markets seek safer havens amidst trade war turmoil.
Now that NAFTA has been successfully renegotiated (and renamed USMCA), traders are now bracing for the US’ full attention to return to a trade war with China, and markets are tensing up as political upheaval within the European continent and emerging markets leaves traders with few choices but safe havens like the Greenback and Japanese Yen.
Australian Building Permits figures also missed the mark in early Wednesday action, helping to send the Antipodean team lower, and Asia-Pacific trading can be expected to continue a haphazard pace of price action with Chinese markets off for the entire week on holidays.
NZD/USD levels to watch
The Kiwi is trapped in a firm downtrend, with a downside channel on the Daily candles giving way to another leg down on the 4-hour timeframe, with support at the last near-term swing low of 0.6540 and 2018’s bottom at the 0.65 handle, while upside resistance is marked in at the last meaningful peak of 0.6700, and this week’s high at 0.6630.
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