NZD/USD seesaws around 4-year low as trade/political tensions prevail


  • NZD/USD nosedived to late-2015 lows amid US-China trade pessimism, overall USD strength.
  • Chinese delegation’s early exit from the US, Trump’s comments triggered risk-off amid geopolitical tension surrounding the Middle East.
  • The light economic calendar keeps the market focus on trade/political headlines.

NZD/USD portrays the recently renewed trade-war risk the best way as it seesaws near the four-year bottom while taking rounds to 0.6265 during early Monday morning in Asia.

The Kiwi pair slumped to multi-year low on Friday after the Chinese delegation canceled their visit to the US farms following the US President Donald Trump’s comments that he wants a full deal with China. Though, China’s Xinhua recently termed the trade talks in Washington as “constructive”.

Also exerting the downside pressure is the US Dollar’s (USD) across the board strength on the back of the risk-aversion wave that gets a boost from the Middle East. The Saudi-Iran tussle seems to have worsened after Yemeni rebels warned of another attack and the US deployed additional forces in the region. Saudi Arabian Foreign Minister conveys that Iran’s launch of an attack would risk war.

While there is nothing major on the economic calendar that could lure investors, trade/political headlines will be the key to follow for fresh direction ahead of the Reserve Bank of New Zealand’s (RBNZ) monetary policy meeting, up for Wednesday.

It should, however, be noted that the US activity numbers for September can entertain short-term traders.

Technical Analysis

In a contrast to the oversold signal by 14-day relative strength index (RSI), which favors the pair’s pullback towards 0.6300 and 10-day SMA level of 0.6330, a sustained trading below the latest low surrounding 0.6250 risks further south-run towards a falling trend-line connecting lows of May and early-September, around 0.6225.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures