- NZD/USD remains on the back foot amid a lack of fresh clues.
- The quote struggled amid China’s upbeat Caixin Manufacturing PMI, US-China trade war.
- No domestic data today, RBA meeting/trade headlines will be followed closely.
With the US markets’ absence and no fresh trade headlines restricting the flow of catalysts, the NZD/USD pair carries earlier weakness while taking rounds to 0.6308 at the start of Tuesday’s Asian session.
The Kiwi pair seesawed around multi-year low, flashed in August, during the first trading day of the current month as investors were undecided about the US-China trade war amid no major headlines while upbeat prints of China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) added worries to market players.
The US tariffs on Chinese product came into effect without any change even if China stepped back from its retaliation expecting it to help in trade negotiations when they confront Trump administration sometime during the month.
Protests at Hong Kong continue to worsen with the latest leaked audio of the national leader Carrier Liam signaling Beijing’s invisible hand stopping her from resigning. China is about to hold a conference to review the situation in Hong Kong, any direct statements indicating further use of military to placate the situation might ire the US as it has previously warned the dragon nation not to adhere it.
While no major data/event from New Zealand is scheduled for publishing, investors will keep an eye over trade/political headlines together with the Reserve Bank of Australia’s (RBA) monetary policy meeting as Australia is its largest customer. Further, the US traders will be back after a long weekend and may react to the weekend news concerning the increasing trade tension amid news tariffs from the US taking effect. Additionally, the US Manufacturing PMIs from Markit and ISM will offer extra information to follow.
Technical Analysis
Pair’s break of recent low surrounding 0.6283 can set the course of further deterioration in the prices to September 2015 low near 0.6236 ahead of highlighting August 2015 bottom close to 0.6085. On the upside, 10-day simple moving average (DMA) surrounding 0.6353 can offer immediate resistance ahead of August 07 low near 0.6378.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains offered in the low-1.0900s
The generalised selling pressure continues to weigh on the risk complex, pushing EUR/USD back toward the 1.0900 support level amid a growing risk-off mood, as traders assess President Trump’s reciprocal tariffs and their impact on economic activity.
GBP/USD retreats further and breaks below 1.2800
The US Dollar is picking up extra pace and flirting with daily highs, sending GBP/USD to multi-week lows near 1.2770 in a context where safe-haven demand continues to dictate sentiment amid the chaos of US tariffs.
Gold recedes to four-week lows near $2,950
The persistent selling pressure is now dragging Gold prices to the area of fresh multi-week troughs near the $2,950 mark per troy ounce, always amid the continuation of the recovery in the US Dollar, highr US yields across the curve and unabated tariff tensions.
US stock market suddenly reverses higher after rumor of 90-day tariff pause before sinking again Premium
NASDAQ sinks 4% before shooting higher on tariff pause rumor. CNBC says White House unaware of tariff pause rumor. S&P 500 sinks to January 2024 level. Bank of America cuts its year-end target for S&P 500 by 16%.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.