NZD/USD will continue its steep decline

The pair will continue its steep decline after it broke down from a key support line. A day before the US is set to impose tariffs to China, the two (2) economic powerhouse signed the phase one trade deal. Under the agreement, Beijing agreed to buy $200 billion worth of US agricultural products. This was to offset the trade deficit between the two (2) countries and to cover the slump in US agricultural sector during the trade war. Though good for the global economy, the phase one trade deal will hurt the New Zealand economy. New Zealand is China’s top agricultural exporter with $17 billion worth of trades last 2018. Kiwi investors are worried about the impact that the additional $200 billion purchase of US goods. In relation to this, New Zealand is ramping up its trading relations with other countries. On December 31, New Zealand and Singapore ratify and upgraded their trading agreement. The deal came into effect the day after the signing.