No, you read that right
Risk assets are benefiting from the announcement so far as equities are trading higher on the day currently. AUD/USD and NZD/USD both breached the 0.7400 handle and the 0.6800 handle respectively thereafter - receiving a boost as equity investors seem to be taking the news in stride.
It looks like the market is largely ignoring the verbal tirade from both parties (more from China so far) and is only going to react when there are concrete or official measures set in place.
For NZD/USD, buyers have continued to maintain control after having breached the 200-hour MA (blue line) in trading overnight. The lows today @ 0.6782 is just shy of that as buyers are continuing the momentum to the upside still.
As long as price stays above the 200-hour MA, near-term bias remains more bullish. But a firm break of the 0.6800 handle will be key to justify a further move to the upside.
Right now, price is trading above both hourly moving averages for the first time since 14 June so let's see if the bounce here will be sustainable.
