The New Zealand Dollar has reached its new four-month high. The boost rooted from the recently raised tariffs on imports of washing machines and solar panels. However, this has likewise raised uncertainties on the protectionist attitude of the White House.
The Kiwi Dollar was last seen at its record high of US73.64 cents which traded at 73.43 cents from US73.22c in yesterday’s trades.
The kiwi dollar climbed as high as US73.64 cents and traded at 73.43 cents at 8am today in Wellington from US73.22c Tuesday. The trade-weighted index gained to 75.39 from 75.21.
The Dollar index recorded a 0.2% decline after the US Trade Representative Robert Lighthizer reported the plans to increase the current tariff rate by at least 30% on imported solar panels. A 50% raise is also planned for residential washing machines as well. The Dollar Index measures the strength of the US Dollar against a roster of global currencies.
The news was recently announced as the US, Mexico and Canada organizes for the upcoming set of North American Free Trade Agreement (NAFTA) renegotiations.
Trump has been promoting his plans to tilt down trade relations in favor of the US. This has consequently worried economist as such could add to the growth of the protectionist policies which will certainly affect the global trades.
"While Trump had pledged to get tough with America's trade competitors during the election campaign, the move yesterday was the first time he had directly signed off on increased tariffs in his time in office," Strategist Nick Smythe told reports. "The USD is generally weaker again, with Trump's imposition of tariffs seemingly the latest excuse to sell the dollar."
Furthermore, the equity markets were rather calm at the time of the announcement. Stocks were seen surging as companies posts their corporate earnings for the first time in 2018.
At the time of writing, the New Zealand Dollar’s trades against the US Greenback were seen bullish as it had a 0.73% increase to 0.00547 points generally. It opened at 0.73543 and can potentially close at its high of 0.74104. It is considered to be overbought as well as its RSI Level was seen beyond the 70’s region, specifically at 79.03.
The Coppock curve of the pair was last seen high above the positive range. It is currently at 5.73 which would recommend a buy for the Kiwi Dollar pair.
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