- RBNZ’s Orr keeps signaling further rate cuts, negative rates while speaking at a parliament committee, NZD/USD stops recovery.
- China trade data, the US-China trade news are in the spotlight.
With the RBNZ’s Governor keep holding his bearish bias towards future monetary policy, the NZD/USD pair refrains from further recovery while trading near 0.6445 at the start of Thursday’s Asian session.
While testifying the latest Monetary Policy Statement before the Parliament, the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr reiterated Wednesday’s dovish statements. Notable among them is “negative rates are possibility”.
Read More: RBNZ Governor Orr: “… we will have to lower the interest rate further”
Even so, the Kiwi refrains from declines, although it stopped recovering, as Mr. Orr also highlighted the bright spots of the economy, including the latest dip in New Zealand’s quarterly Unemployment Rate.
It’s worth mentioning that the Kiwi slumped to the lowest since January 2016 on Wednesday after the RBNZ announced a huge 0.50% rate cut and the Governor raised possibilities of further cuts, negative rates during his press conference.
Looking forward, China’s July month trade data are nearby to watch whereas trade/political news concerning the US and China becomes the major catalyst to follow during the rest of the day.
Technical Analysis
Unless rising back beyond 0.6487/88 area, comprising lows marked in mid-June and August 05, prices are likely to remain tilted towards latest low surrounding 0.6377 with October 2018 low near 0.6424 and 0.6400 round-figure likely being intermediate halts during the fresh south-run.
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