- The Kiwi is scrambling to recover from early Tuesday’s US-China tariff action.
- Kiwi GDP due mid-week to keep NZD traders hanging in the middle.
The NZD/USD pairing is ticking into 0.6575 after peaking at 0.6596 in Tuesday’s early overnight session before taking a step back down to 0.6561 after the US formally announced tariffs on China worth $200 billion USD to take effect on September 24th.
The Kiwi market will be seeing New Zealand’s latest GDP figures late Wednesday at 22:45 GMT where markets are anticipating an uptick to 0.8% for the q/q headline compared to 2018’s Q1 result of 0.5%, and NZD traders will be shifting their feet ahead of the key reading as broader market sentiment continues to pull the G10 currencies around by the nose on continuing trade war fears.
With the US marking in another raft of tariffs against China, Asia market participants will be keeping an eye out for a Chinese response. China has already vowed to respond tit-for-tat with the US on any trade barriers and levies, a narrative that sees US President Donald Trump already gearing up for yet another round of tariffs, this one slated to be worth $267 billion. The escalation into a full-blown trade war by the US has seen both countries pull far away from the negotiating table, and markets will be keeping one foot in safe havens while they wait for the next turn of the page.
NZD/USD levels to watch
The spunky Kiwi has struggled to recover from last week’s major bottom of 0.6500, but bulls are determined to try and push the NZD/USD back above the 0.6600 technical level, though buying opportunities have been few and far between; A continued push will have to contend with a descending 50-day EMA at 0.6675, with the last swing high marked in at 0.6725.
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