FxWirePro: NZD/USD faces downward pressure as trade tensions rise

• NZD/USD slipped lower on Monday as fears that a tit-for-tat global trade war would send the global economy into a recession hit  kiwi dollar.

• China responded to U.S. President Donald Trump's tariffs on Friday, declaring it would impose a 34% levy on American goods, fueling investor fears that a full-blown global trade war has started.

•The RBNZ is set to be the first central bank to respond to U.S. President Donald Trump's reciprocal tariffs on the global economy.

• RBNZ is expected to cut its official cash rate by 25 basis points to 3.50% on Wednesday, with economists predicting further cuts in 2025 due to the impact of U.S. tariffs and potential global economic fallout.

• In February, the bank planned a 25 basis point rate cut in April and May. However, last week, Trump's tariffs shocked markets, raising fears of a trade war and global recession..  

•  Immediate resistance is located at 0.5621(38.2%fib), any close above will push the pair towards 0.5683(50%fib).

•  Support is seen at 0.5520 (Daily low) and break below could take the pair towards 0.5483(23.6%fib).

 Recommendation: Good to sell around 0.5560, with stop loss of 0.5630 and target price of 0.5480