NZD/USD: Renewed trade war exerts additional downside pressure ahead of NFP

• NZD/USD fails to overcome Fed-led downpour as the US President renewed trade war with China.
• Lack of data highlights news/political headlines ahead of the US NFP.

While sluggish US economics helped NZD/USD to erase some of the earlier losses, the pair drops at the start of Friday’s Asian session amid a fresh trade war between the world’s two largest economies. The Kiwi pair currently takes the rounds to 0.6555, near six-week low flashed the previous day.

Be it the US Federal Reserve’s not-so-dovish rate cut or the US President Donald Trump’s surprise tariff hike on remaining Chinese goods, the US headlines propelled global markets recently.

It is anticipated that the Fed’s measured easing attempt and no breakthrough from Shanghai talks pushed President Trump towards additional 10% tariffs on the remaining $300 billion worth of Chinese goods starting from September 01. After the move, the Antipodeans slumped on fears of a fresh trade war that weighed on them during early-year.

Given the lack of data at home, traders will keep an eye over political/trade headlines for intermediate moves to the US monthly employment report wherein the headline Nonfarm Payrolls (NFP) for July, expected 164K versus 224K prior, will be closely examined for fresh impulse.

Technical Analysis

A nine-day-old descending trend-line, at 0.6575 becomes immediate resistance for the quote to clear in order to revisit 0.6600 round-figure, failing to do so can keep driving the pair towards towards June month low around 0.6487.