- NZD/USD extends slump, dives 0.58% on the day to trade at 0.6752 at the time of writing.
- The antipodeans remain under pressure on escalating Sino-US trade tensions.
- The US President Trump proposed increasing the tariffs on Chinese imports to 25 percent from the initially proposed 10 percent duty.
- China is expected to retaliate if the Trump administration goes ahead with a hike in tariffs, leading to further escalation of the trade war.
- Technical indicators support weakness in the pair. Stochs and RSI are biased lower.
- Bears eye minor trendline support at 0.6735. Break below will see test of 0.6743 (78.6% Fib) ahead of 0.6687 (July 3 low).
- On the flipside, 21-EMA is strong resistance at 0.6802. Break above could see upside till 0.6855.
- Focus now on US no-farm payrolls for further impetus.
Support levels - of 0.6743 (78.6% Fib), 0.6687 (July 3 low)
Resistance levels - 0.6794 (5-DMA), 0.6855 (23.6% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -141.715 (Bearish), while Hourly USD Spot Index was at 94.2474 (Bullish) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
