NZD/USD: Bulls challenged as greenback regains market attention
- NZD/USD currently trades around 0.6845 before Asian markets start on Tuesday.
- Likely threat to global auto industry from the US pushed investors to the USD’s safe haven demand while cutting down on antipodeans.
- The pair has 0.6840 as immediate support contrast to 0.6890 being nearby resistance.
The NZD/USD pair shed majority of its gains by trading around 0.6850 near to the start of Tuesday’s Asian trading. The Kiwi and other antipodeans recently declined against the US Dollar (USD) in spite of a holiday in the US as investors rushed to greenback’s safe haven appeal amid likely threat to global auto industry from the US.
The Kiwi initially reacted to the weekend positives concerning the US-China trade deal. The pair increased to the near 0.6900 mark as traders weighed prospects of a trade pact between the world’s two largest economies on the US President Donald Trump’s weekend tweet praising the progress of the negotiations at Beijing.
The US-China optimism got additional love from NZD/USD buyers after Reuters reported that the New Zealand PM Jacinda Arden said in a press conference that NZ and China relations are `robust and mature'.
However, the moves couldn’t last long on Monday in spite President’s day holiday in the US as speculations grew that the Department of Commerce was to submit a report to the White House that could convey auto imports as a threat to the US national security. Global markets took note of this as a possible threat to the macro auto industry, especially to the EU, and rushed to the USD in search of risk safety. The move also negatively affected antipodeans.
It should be noted that the US has previously indicated to levy fresh tariffs on the EU car imports that didn’t go well to the relationship between the US and the EU.
NZD/USD: Technical Analysis
The NZD/USD pair is presently near to an upward sloping trend-line connecting lows marked since Wednesday last-week, at 0.6840. The pair needs to slid under 0.36840 in order to revisit 0.6800 and 0.6770 supports.
Alternatively, 0.6890 and 0.6905 are likely nearby resistances for the pair to clear ahead of looking at the 0.6935 resistance-line that joins highs marked since December.