- NZD/USD stays mildly positive near the highest since March 2019.
- Second-tier data from New Zealand came in mixed, risks dwindle amid virus woes, vaccine hopes.
- Return of US traders, challenges to trading sentiment and the American inflation number will be the key.
NZD/USD extends fresh upside momentum while extending bounce off 0.6862, to currently near 0.6900, during Thursday’s Asian session. The kiwi pair jumped to the 20-month peak as RBNZ statement and comments from Governor Adrian Orr seemed cautiously optimistic despite the fresh offer of the money supply.
Be it the refrain from entertaining the chatters for negative rates, at least for now, or hopes of economic recovery, yesterday’s updates from the Reserve Bank of New Zealand (RBNZ) pleased NZD/USD bulls. The mood also got confirmations from the coronavirus (COVID-19) conditions at home, unlike those from the US and Europe.
The pair recently turned silent as New Zealand’s REINZ House Price Index for October contrasted September month’s Visitor Arrivals. The latest figures suggest the former grew past-2.5% previous readouts to 3.5% MoM whereas later dropped below -75% forecast and -96.9% prior to -96.7%.
Mixed risk sentiment also plays roles in confusing the kiwi traders. While the recent hike in the US COVID-19 cases favors the risk aversion, vaccine hopes also magnify to tame the bears. Also on the positive side could be the recent fashion among the global central bankers to keep their wallets open but avoid negative interest rates.
Amid these catalysts, S&P 500 Futures print mild losses while the US 10-year Treasury yields an inch close to 1.0%.
With the American traders’ scheduled return from Veterans Day Holiday, coupled with the monthly US Consumer Price Index for October and the weekly Jobless Claims, NZD/USD traders may have an active day. However, the recently gained upside move is likely to remain intact considering the RBNZ’s latest move and the comparatively higher numbers of problems in the US than New Zealand.
Technical analysis
Unless declining below the 0.6800 threshold, near the September high, even short-term NZD/USD bears aren’t likely to enter the trade.
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