NZD/USD now below critical support levels, investors concerned about Trump protectionist policies?

Currently, NZD/USD is trading at 0.6948, down -0.93% on the day, having posted a daily high at 0.7020 and low at 0.6943.

NZD/USD lead the way down for the antipodeans this week, despite an improved risk sentiment after the French election's first round outcome. There was no news for the Kiwi, yet supply came in thick and fast at 0.7038 and again at 0.7015 where stops at 0.6980/90 created a long squeeze down to 0.6943 the low today. 

One major concern for the RBNZ, who commented on this earlier on in the year, are Trump's protectionist sentiment. Given we are coming to the end of his first 100 days, Trump may want to push through such policies ASAP, such as what we are starting to see in respect to Canada trade deals. Such renewal of protectionist sentiment will likely upset upcoming NAFTA renegotiations and the kiwi will certainly be caught up in such risk (In respect to dairy prices)  along with other NAFTA FX trades while the dollar would likely catch a bid. 

Trump's tax plans to be made public Wednesday - UOB

NZD/USD levels

The midpoint of the 20th April rally to 0.7050 gave way in Tokyo overnight, along with the 200 ema on the hourly sticks and the 0.7000 psychological level. The price is now at the next critical level at 0.6933/50. A break of the 0.69 handle opens up the 0.6885 mark as being the recent lows guarding 0.6675 as the 29th May 2016 high on a break of the 0.67 handle. On the flip side, a run back to the previous aforementioned consolidation area, bulls have the 17th April highs of 0.7035 is sight protecting 0.7060/70 and recent high today around the 200-d ema (0.7067). There is a double bottom at 0.7130 as the mid-Feb lows.