- Risk appetite got a boost on proposed Trump/Kim meeting.
- Caution due to Trump’s tariff plan caps upside in NZD/USD.
Yen Fading North Korea risks weighed on the Japanese Yen in Asia. The resulting rise in the NZD/JPY seems to have pushed NZD/USD higher.
Currently, the Kiwi is trading at 0.7268, having clocked a low of 0.7249 earlier today.
It was reported in early Asia that North Korea’s Kim Jong Un is committed to denuclearization and has invited President Trump to meet for negotiations over its nuclear program. The increased prospects of peace in Korean Peninsula triggered a wave of selling in the overbought Japanese Yen.
The NZD and risk currencies found bids, but the upside is being capped largely on fears of a trade war and on account of caution ahead of the release of the US wage growth numbers.
NZD/USD Technical Levels
A break above 0.7275 (50-day MA) would expose resistance at 0.7311 (March 6 high). A close higher would suggest the pair has bottomed out at 0.7186 (March 1 low) and would open doors for a re-test of 0.7437 (Feb. 16 high).
On the downside, breach of support at 0.7245 (previous day’s low) could yield a sell-off to 0.7186 (March 1 low) and 0.7181 (200-day MA).