The New Zealand Dollar still holds above 68c at 0.6819 against the U.S dollar at the time of writing. The NZD/USD see-sawed through yesterdays trading session, first advancing to touch a high of 0.6857 during Asian trade, followed by a low of 0.6806. As the European session kicked into full swing and US markets began their day the NZD advanced towards 0.6842 however, all gains were quickly wiped at first light this morning on news that the Trump administration was planning to publish a list of new tariffs to be imposed $200 billion worth of Chinese goods. Risk aversion kicked in with trade concerns firmly back to the centre of the market radar.
Local data realised confirmed a weak Q2 for retail card spending with June increase of 0.8% m/m in June following an upwardly revised 0.6% m/m lift in May. Q2 consumer spending was impacted by a very weak April print. On a quarterly basis, the pace of growth is sitting at -0.2% q/q.
Data wise quiet locally but offshore we see US PPI ahead of the closely watched US CPI release on Thursday.
On the technical front, support sits around 0.6800 followed by 0.6780, meanwhile on the upside resistance at 0.6830 and 0.6860.