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FxWirePro: NZD/USD firms as US dollar dips as Trump-Fed feud deepens

• NZD/USD   firmed   on Monday as U.S. dollar dipped after Powell said the Trump administration threatened him, fueling worries about the central bank’s autonomy.

• Powell said the Trump administration threatened him with criminal charges and subpoenas over his congressional testimony, calling it a pretext to push the Fed toward rate cuts.

•   The developments signal a major escalation in the ongoing clash between Powell and Trump, which started in 2018 during his initial years as Fed chair.

• The dollar had the sharpest reaction, falling even against typically risk-sensitive currency like the  New Zealand dollar.

• Meanwhile, market participants kept an eye on the Reserve Bank of New Zealand’s potential rate moves, ahead of the Q4 CPI data due next week.

•  Immediate resistance is located at 0.5783(SMA 20), any close above will push the pair towards 0.5801(50%fib).

•Support is seen at 0.5711 (38.2%fib) and break below could take the pair towards 0.5701(Lower BB).

 Recommendation: Good to buy around 0.5730 with stop loss of 0.5630 and target price of 0.5800

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