NZD/USD begins the week with the gap-down as US-China tussle disappoints Antipodeans
Following its upbeat closing on Friday, NZD/USD begins the week’s trading with a bearish gap to 0.6385 at the start of Asian trading on Monday.
Contrast to the Reserve bank of New Zealand’s (RBNZ) Governor Adrian Orr’s preference for the “wait and watch” approach after 50 basis points of the rate cut, the Federal Reserve Chairman Jerome Powell cited downside economic risk, mainly due to the trade frictions.
While the central bankers’ move justified Friday’s upside by the Kiwi pair, the aftermarket trade war between the US and China gives the reason for today’s gap-down.
In a response to China’s tariffs on $75 billion worth of the US goods, the US President not only increased tariffs rates on $550 billion of the dragon nation’s goods but also pushed the US companies to leave the Asian economy.
NZD/USD SHORT (Sell)
ENTER AT: 0.63910