NZD/USD flat-lined below 0.6600 mark, focus remains on US-China trade developments

   •  Escalating US-China trade tensions continue to weigh on perceived riskier currencies. 
   •  Declining US bond yields undermine USD demand and seemed to help limit deeper losses.

The NZD/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European session on Monday.

A combination of diverging forces failed to provide any meaningful impetus and assist the pair to build on last week's goodish recovery from six-month/yearly lows, touched in reaction to RBNZ's decision to cut interest rates.

The recent escalation in the US-China trade tensions continued denting global risk sentiment and was seen as one of the key factors keeping a lid on any meaningful up-move for perceived riskier currencies - including the Kiwi.

In the latest trade-related developments, China announced to raise tariffs on $60 billion worth of US imports. This comes on the back of the recent US tariff hikes and further fueled fears of a full-blown US-China trade war.

Meanwhile, the US Dollar languished near multi-week lows amid the prevailing risk-off mood-led slump in the US Treasury bond yields and turned out to be the only factor that helped limit further downside, at least for now.

In absence of any major market moving economic releases, the pair remains at the mercy of the USD price dynamics/trade-related headlines and seems more likely to continue with its range-bound price action on Monday.

Technical levels to watch