- RBNZ’s Orr refrained from direct comments on monetary policy.
- New Zealand data came out as positive.
- US-China trade show is important to watch now.
Even after RBNZ’s financial stability review and comments from the RBNZ’s Governor Adrian Orr, not to forget ANZ data, the NZD/USD pair trades near 0.6540 during early Wednesday.
The RBNZ’s Orr didn’t mention anything important to his testimony to Parliament Select Committee about the quarterly release of financial stability review. He said that capital review will deliver net benefits.
Previously during the day, a quarterly report from the Reserve Bank of New Zealand (RBNZ) flashed mixed signals. The report did cite looming economic risk but refrained from altering loan to value ratio (LVR).
Following the release, ANZ’s business confidence and activity outlook numbers for May were also out. The activity outlook improved to 8.5% from 7.1% prior and 2.9% forecast whereas business confidence rose to -32.0 from -37.5 earlier versus -42.7 expected.
With the headline data/events from New Zealand already out and loud, investors may now look forward to trade-related comments from the US and Chinese lawmakers/media.
Off-late, both the sides are trying to term each other down in the media wherein the US President Donald Trump signals higher tariffs for China while the other one indicates limiting rare earth metals’ export to the US.
Additionally, Bloomberg news expects the weaker performance of China based on early indicators and the same could weigh on commodity-linked currencies like New Zealand Dollar (NZD).
Technical Analysis
Unless clearing 0.6560, chances of witnessing 0.6585, 0.6610 and 0.6660 back on the chart are less. As a result, 0.6515 and 0.6480 could keep being on bears’ radar ahead of targeting October 2018 low surrounding 0.6425.
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