NZD/USD back into the 0.6880 level after slipping from December's peaks
NZD/USD is trading back into 0.6880 after December's early open saw the Kiwi lift into six-month highs, but a resurgence in broad-market fears surrounding trade wars is seeing risk-based assets stooping against the US Dollar, especially in the Asia-Pacific region.
New Zealand economic data have been particularly devoid recently, leaving the NZD/USD pairing to trade into general market sentiment headwinds, and despite a steady recovery from October's lows, selling pressure remains built-in for the Kiwi, getting pulled back to the 200-day moving average at 0.6850, but a successful bounce by bidders from the key indicator could see a fresh bullish run get started.
Friday sees another round of the US NFP data dump, and Pacific investors are buckling down for the key data reading. Not content to dominate the economic calendar, the US is also the critical factor in news headlines as well, with US President Trump declaring himself a "Tariff Man" on Twitter this week, further undermining the perceived tariff truce that the US president struck with China's Xi Jinping last weekend, and broader markets are fearing a reappearance of escalating trade tensions between the US and China much sooner than expected.