US and Mexico temporarily reached agreement, the dollar rebounded, and the technical trend of Canada
The bank‘s analyst added: "We also turn to the neutral point of view for the New Zealand dollar. Considering that the New Zealand Federal Reserve shows that the official discount rate (OCR) will remain near the current level in the ‘visible future‘. We remain vigilant about the real estate market, I believe The NZD/USD will face a resistance challenge at 0.6686 and is expected to remain in the range above the May low of 0.6482."
June 10th, 22:30 to June 11th, 06:30, the market summary: As the United States and Mexico avoid tariffs, the US dollar index rose by about 0.4%, approaching the 97 mark. Last week, investors encouraged the increase due to poor economic data. The dollar was weakened by the big bets that the Fed will cut interest rates soon. The US non-farm payrolls announced in May last year added only 75,000 people, far less than expected, and the salary growth rate was not as expected. The euro fell because sources said that if the euro zone‘s economic growth weakens, ECB policymakers are open to interest rate cuts.
According to the latest news, Trump issued a tweet tonight, signing another important part of the Mexican immigration agreement, which will be announced shortly and requires the approval of the Mexican legislative branch. If Mexican legislation fails, tariffs may come back. It is reported that Mexico agreed on the rapid expansion of asylum projects on Friday and deployed security forces to prevent Central American immigrants from flooding into the US border.
The US-China trade war and fears that Trump will impose tariffs on Japan and Europe may make investors reluctant to increase their holdings of riskier assets. Earlier, two sources familiar with the ECB‘s policy discussions said on Sunday that if the euro zone economy stagnate after a 0.4% expansion in the first quarter, it will very likely cut interest rates. The European Central Bank said last week that interest rates will remain at “current levels” until mid-2020, rather than suggesting that interest rates will be cut as some have expected, and the euro is soaring.