- NZD/USD hovers around 0.69 handle, trade fears and looming RBNZ could weigh further on the major.
- Risk recovery is facing challenges early in the week on news of escalating US-China trade issues.
- Reports that Trump administration is planning to block Chinese companies from investing in US technology companies is keeping trades wary.
- These measures, if announced, may spur more retaliation from China and could lead to a long drawn out trade war.
- The pair could continue to decline ahead of the Reserve Bank of New Zealand's (RBNZ) next showing.
- The RBNZ (due Wed), is expected to keep cash rate steady at 1.75% with little change in the policy statements.
- Majority of economists polled by Reuters also expect the central bank to remain unchanged on rates well into Q4 2019.
- The pair has ignored Doji formation at lows, struggles to extend upside above 5-DMA.
- Price action remains below daily cloud and major moving averages, break below major trendline support at 0.6870 could see further weakness.
Support levels - 0.6886 (5-DMA), 0.6870 (Trendline), 0.6825 (June 25 low)
Resistance levels - 0.69, 0.6979 (21-EMA), 0.70
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -17.4285 (Neutral), while Hourly USD Spot Index was at -97.4635 (Bearish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
