NZD/USD knocking back into last week's lows as risk appetite evaporates
|- The Kiwi is heading lower in early Wednesday action despite a better-than-expected Trade Balance report.
- Market sentiment is continuing to sour as traders struggle to recover from the ongoing geopolitical tensions from abroad.
The NZD/USD is trading lower once again in Wednesday's Asia markets, knocking back into 0.6830 and setting a new low for the week.
Overall market sentiment is still struggling to recover, and the NZD is slipping on the day despite the Trade Balance figures earlier giving the pair a bullish push after New Zealand's Trade Balance jumped to a $294 million surplus, clearing market expectations of a $100 million surplus driven by a surge in exports, which posted their second-best month in the recorded data.
New Zealand's ANZ Activity Outlook for June came in below the last printing, coming in at 9.4% versus the rpevious 13.6%, implying that New Zealdn businesses are bracing for a further slowdown within the Kiwi's economy, while the ANZ Business Confidence Survey also steepened its negative outlook, clocking in at -39 versus the previous reading of -27.2.
Market sentiment is still the big driver of broader markets, and risk appetite is heaving a queasy week, taking riskier assets further down for the day following headlines that yet another key member of US President Trump's inner economic advisory circle is leaving the White House administration, alongside reports that Russia's Energy Minister held a meeting with US Treasury Secretary Steven Mnuchin. Friendly exposure between Russia and the US comes at a po0or time, especially with President Trump actively ensaring long-time allies and trading partners with the US in a vehement battle of words and trade tariffs.
NZD/USD levels to watch
The pair is dangerously close to taking out last week's low of 0.6825, and a dedicated break of the level will see further bearish action taking the Kiwi into 0.6780, November 2017's low for the pair. Bullish action is being capped by the week's high at 0.6920, and a bullish reversal will face further challenges from June's highs far above at 0.7060.
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