• 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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