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The Kiwi took some hits as risk aversion returned on account of fresh trade tensions, but data from New Zealand remains mostly upbeat.

Currency Snapshot:

Major Forex Pairs Performance from MarketMilk
Major Forex Pairs Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

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What to Watch: NZD/JPY

NZD/JPY 1-hour Forex Chart
NZD/JPY 1-hour Forex Chart

Traders seemed to be back to their extra jumpy selves, particularly when it comes to updates concerning trade talks between the U.S. and China. Earlier in the session, the Donald took a swipe at negotiations and said he’d rather wait until after the elections before finalizing a deal.

However, economic data from New Zealand has been noticeably upbeat as the ANZ commodity price index revealed an impressive 4.3% increase in prices after the earlier 1.2% uptick. Keep in mind that previously released figures have also surpassed expectations, dousing hopes of an RBNZ cut soon.

A return in risk-taking as trade jitters subside could once again benefit the higher-yielding Kiwi and drag the yen lower as it has done so in previous weeks.

The pair is trending higher on its 1-hour time frame and inching closer to testing a rising trend line support. This happens to line up with the 61.8% Fib level and the 100 SMA dynamic support around 70.50.

NZD/JPY Trend Rating from MarketMilk
NZD/JPY Trend Rating from MarketMilk

The pair is still trending higher as confirmed by moving averages, but a lot could hinge on how risk appetite turns out over the next few hours.

A long play around 70.50 could work with a stop of roughly 60 pips, which is above NZD/JPY’s average daily volatility, could provide enough leeway.