The New Zealand Dollar opens lower this morning vs. the Greenback as investors moved away from the Kiwi and risk aversion was back in full swing. The NZD/USD pair dropped from a high of 0.6798, through support levels of 0.6760 down to 0.6736. The move was triggered by trade concerns firmly back to the center of the markets radar with White House officials confirming that President Trump has gone ahead and increased the tariff rate on $200bn of additional Chinese imports from 10% to 25%, citing China’s failure to address US concerns over “unfair trading practices”.
Data wise, there was nothing to report locally; however, the Bank of England voted to hike rates by 25bps to 0.75%, the BoE governor has said further hikes would be limited and gradual. Over in the US, the final estimate for durable goods orders was a rise of 0.8% in June. It is a downward revision from the 1.0% increase initially reported in June. Meanwhile, US Jobless claims continue to hover near its lowest levels since the late 1960’s. Claims rose 218k in the week ended July 28, from 217,000 in the prior week.
Looking ahead, we will all be watching for the anticipated US employment report; expectations are to see steady employment for the month and a slight drop in the unemployment rate.
On the technical front, support sits around 0.6725 followed by 0.6685, meanwhile on the upside resistance at 0.6760 and 0.6800.