• The NZD/USD ticked higher on Monday as positive weekend talks between the U.S. and China lifted market sentiment
• U.S. and Chinese negotiators reached an agreement to reduce the U.S. trade deficit, officials said Sunday following trade talks in Geneva.
• A joint statement is expected later Monday,but parties have so far avoided any mention of specific tariff rates.
• Market participants are closely watching the tone and substance of the forthcoming statement, as it may set the direction for the NZD/USD in the short term.
• At GMT 05:48, the dollar was up 0.34% to 0.5928 against the New Zealand dollar.
• Immediate resistance is located at 0.5941(38.2%fib), any close above will push the pair towards 0.6023 (23.6%fib).
• Support is seen at 0.5866 (50%fib) and break below could take the pair towards 0.5799(61.8%fib).
Recommendation: Good to buy around 0.5920 with stop loss of 0.5850 and target price of 0.6000
