• NZD/USD moved lower on Monday as renewed tariff concern reignited global trade fears and weighed on overall market sentiment.
• President Trump escalated trade tensions on Saturday, vowing to impose a 30% tariff on imports from Mexico and the EU starting August 1, after talks with both trading partners failed to produce a comprehensive deal.
• The European Union and Mexico denounced the tariffs as unfair and disruptive. The E.U. said it would extend its pause on retaliatory measures until early August while pursuing a diplomatic solution.
• This week investors focus is on on Tuesday’s U.S. inflation print for June, with markets pricing in a little over 50 basis points of Fed rate cuts by year-end.
• Markets will also be watching a heavy batch of Chinese data this week, starting with Monday’s June trade report and continuing Tuesday with retail sales, industrial output, and GDP.
• Immediate resistance is located at 0.6039(38.2%fib), any close above will push the pair towards 0.6088 (Higher BB).
• Support is seen at 0.5969(50%fib)and break below could take the pair towards 0.5950(Lower BB).
Recommendation: Good to sell around 0.5990 with stop loss of 0.6080 and target price of 0.5900
