• NZD/USD initially rose but gave up some ground as investors reacted to framework of a trade deal between US and China.
• Top U.S. and Chinese officials agreed on a trade deal framework Sunday ahead of Presidents Trump and Xi’s meeting in South Korea later this week.
• U.S. President Donald Trump faces a major test of his second term when he meets Chinese President Xi Jinping in South Korea on Thursday, as both leaders aim to prevent a further escalation of their trade war.
•The Australian and New Zealand economies rely heavily on exports to China, making their currencies common tools for investors to hedge against trade and risk fluctuations.
• Meanwhile, Reserve Bank of New Zealand Governor will speak on Wednesday and is expected to maintain a dovish tone after cutting rates by a hefty 50 basis points earlier this month and keeping the door open for further easing.
• Immediate resistance is located at 0.5782(38.2%fib), any close above will push the pair towards 0.5805(Sep 24th high).
• Support is seen at 0.5733(Oct 23rd low) and break below could take the pair towards 0.5702(23.6%fib).
Recommendation: Good to sell around 0.5770 with stop loss of 0.5850 and target price of 0.5720
