NZD/USD remains in positive territory above the 0.5750 level, supported by ongoing concerns over the US-China trade conflict
FUNDAMENTAL OVERVIEW:
- NZD/USD edges higher to around 0.5770 during Friday’s Asian session.
- The Trump administration has imposed fresh tariffs on China, raising the total rate to 145%.
- Meanwhile, the Reserve Bank of New Zealand (RBNZ) maintains ample scope for additional interest rate cuts.
The NZD/USD pair remains in positive territory near 0.5770 after touching an intraday high of 0.5800 during Friday’s Asian session. The pair’s upward momentum is supported by broad-based US Dollar (USD) weakness, driven by growing economic uncertainty amid escalating tariff tensions.
On Wednesday, President Trump announced a 90-day delay in tariffs for all countries except China. By early Thursday, he confirmed that China would face a total tariff rate of 145%, including a pre-existing 20% duty related to fentanyl. Rising fears of a global recession and intensifying trade wars have weighed on the Greenback, providing a tailwind for NZD/USD.
On the New Zealand side, the Reserve Bank of New Zealand (RBNZ) lowered its benchmark interest rate by 25 basis points at its April meeting, responding to softening inflation and slowing domestic growth. Analysts now expect a deeper 50 bps cut ahead, with markets pricing in the potential for up to 100 bps of further easing by 2025. This dovish outlook may limit the New Zealand Dollar’s upside in the near term.
NZD/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
NZDUSD is trading within a down channel.
NZDUSD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 0.5820
Immediate support level: 0.5680
HOW TO TRADE NZD/USD
After a sharp decline, NZD/USD found support and reversed course, resuming its upward movement. The pair is currently trading higher and has surpassed the previous day’s high. It is now approaching a key resistance level—if this barrier is breached and the price holds above it, further upside momentum could follow.