NZD to follow AUD with the temporary base

=> Again another technical setup here as we await the dollar to be sold for the remainder of the year...
=> We have lost the support at 0.6547 which was the 76.4% retracement level from the rally that lasted from 2015 - 2017
=> This tells us that there will be some soft profit taking here from those who have been short for some months prior...
=> The downtrend is far from over as there is still plenty of eyes on the 0.6417 levels, in our view to get there we need a pullback so that is what we are tracking here.
=> From a fundamental perspective, the main question that still needs answering is whether we will get any news on the global trade front.
=> Trump has continued to escalate the protectionism with China with an additional $200bn in tariffs but we have seen no 'official' announcement as of yet. Until there is clarity we don't see markets extended the downside here.
=> Businesses in New Zealand are skeptical to say the least, and consumers are too. Expectations have declined across the board and profitability is being squeezed especially via rising labour costs.
=> Lets see how it goes...
=> GL