• The NZD/USD edged lower on Tuesday as growing concerns over tariff war weighed on trade-exposed currencies like kiwi dollar.
• U.S. President Donald Trump's 25% tariffs on Mexican and Canadian imports took effect Tuesday, alongside a duty hike on Chinese goods to 20%, escalating trade tensions with the nation's top three partners.
• The additional 10% duty on Chinese goods builds on a 10% tariff imposed by Trump on February 4, aimed at penalizing Beijing over the U.S. fentanyl overdose crisis.
• The New Zealand dollar often used as a proxy for China's currency was down 0.25% to $0.5606.
• Immediate resistance is located at 0.5646(38.2%fib), any close above will push the pair towards 0.5850(50%fib).
• Support is seen at 0.5591 (38.2%fib) and break below could take the pair towards 0.5562(Lower BB).
Recommendation: Good to sell around 0.5610, with stop loss of 0.5680 and target price of 0.5550
