NZD/USD: bears clearing pathway to previous double top zone 0.7030/50

Currently, NZD/USD is trading at 0.7124, down -1.10% on the day, having posted a daily high at 0.7206 and low at 0.7100.

NZD lost 0.7% overnight with the markets brushing off a strong-terms of trade in favour of RBNZ Wheeler expressing great concern about Trump and trade. In terms of data, NZ Q4 Terms of Trade rose by +5.7%/qtr (mkt 4.0%).  Export volumes fell 5.8%/qtr while import volumes rose 1.2%/qtr and so net trade eats into the analysts at TD Securities GDP forecast (from +1.2% to +0.9%). 

"In an unusual interview before his (newly announced) speech tomorrow, RBNZ governor Wheeler raises concerns on the new Trump administration’s protectionist policies," explained the analysts, adding, " He was quoted that even if NZ exports to US are not tariffed, NZ will be hit by the downturn in the global economy and spillover effects from changes in trade flows. NZD weakened and underperformed on this sentiment."

US: Trump’s plans for fair trade sound like a border tax adjustment - ING

NZD/USD levels 

NZD/USD is testing the 0.7120 support line and has already seen some territory below the 0.71 handle at the aforementioned low exposing the bull's lack of commitment at the handle for a run to 0.7030/50 and the previous double top zone. The upside, 0.7180, 0.7204 and 20 day sma guards 0.7250 and 0.7374 6th Feb highs. 

AUD/USD down 45-pips from highs; short-sellers targeting 0.7615