• NZD/USD edged lower on Tuesday as renewed trade tensions between the U.S. and China dampened investor sentiment, reducing demand for risk-sensitive currencies like the New Zealand dollar.
• Market sentiment turned cautious after U.S. President Donald Trump accused China of violating a tariff rollback agreement allegations that Beijing has strongly denied, calling them groundless.
•Market sentiment was also dampened by the looming 50% U.S. tariff on steel and aluminum imports, set to begin Wednesday alongside a key trade offer deadline.
• U.S. President Trump and Chinese leader Xi Jinping are expected to speak this week, with markets closely watching the call for any progress in trade negotiations between the world’s two largest economies.
• At GMT 10:21, the New Zealand dollar was down 0.59% to 0.6001 against the greenback
• Immediate resistance is located at 0.6058(23.6%fib), any close above will push the pair towards 0.6077 (Higher BB).
• Support is seen at 0.5971 (38.2%fib) and break below could take the pair towards 0.5869(50%fib).
Recommendation: Good to buy around 0.5970 with stop loss of 0.5850 and target price of 0.6080
