NZD/USD - resilient to risk-off in early Asia, yield differential rises in NZD-postive manner

• Kiwi stuck in a 25-pip range of 0.73-0.7775 in Asia, despite risk-off. 
• 10Y NZ-US yield spread rises in the NZD-positive manner. 

Trump's Chief Economic Advisor Gary Cohn's resignation boosted trade war fears and weighed over risk assets in early Asia. The S&P 500 futures fell almost 1.5 percent and the Japanese Yen rose across the board. 

Also, the dairy product prices fell at the GlobalDairyTrade auction, with whole milk powder declining amid an increase in supply. 

Still, the NZD remained relatively resilient, possibly due to favorable yield spread. The 10-year NZ-US yield spread rose to 16 basis points (bps) yesterday from 10 basis points. As of writing, the spread stands at 18 basis points, while the Kiwi is trading marginally weak at 0.7285. 

The currency pair rose from 0.7221 to 0.7311 yesterday after news hit the wires that North Korea is willing to hold talks with the US over its nuclear weapons programme.

NZD/USD Technical Levels

A convincing move above yesterday's high of 0.7311 would open up upside towards 0.7420 (Jan. 31 high) and 0.7437 (Feb. 12 high). On the downside, breach of support at 0.7268 (50-day moving average) would open doors for a re-test of 0.7186 (Mar. 1 low) and 0.7179 (200-day moving average).