• NZD/USD trimmed some of early losses on Monday as investors reacted to Trump’s tariff comments on steel and aluminum.
Trump announced he will impose new 25% tariffs on all steel and aluminium imports into the U.S. later on Monday, along with reciprocal tariffs on Tuesday or Wednesday, matching the tariff rates levied by each country.
• Latest tariff move heightens global trade war concerns as China’s retaliatory duties on U.S. goods set to begin.
• Looking ahead, data calendar in New Zealand is light this week until its central bank meeting next Wednesday.
• The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negative.
• Immediate resistance is located at 0.5662(50%fib), any close above will push the pair towards 0.5725(61.8%fib).
• Support is seen at 0.5898(38.2%fib) and break below could take the pair towards 0.5540(Jan 13th low).
Recommendation: Good to sell around 0.5700 with stop loss of 0.5850 and target price of 0.5620
