- NZD/USD wavers in the choppy range between 0.6686 and 0.6710.
- NZ PM Ardern announces measures to help small employers, workers.
- November’s ANZ data for New Zealand came in mixed, risk dwindles despite Biden’s lead in US elections.
NZD/USD seesaws around 0.6700 while keeping the immediate 25-pip range during Thursday’s Asian session. The pair recently paid a little attention to Prime Minister (PM) Jacinda Ardern’s comments favoring help for the domestic businesses. The reason could be traced from mixed sentiment data from the Australia and New Zealand Banking Group as well as uncertainty over the US elections.
In addition to offering the extension to the small business lending program, PM Ardern also showed readiness to increase funding for employers to engage extra workers. The recently re-elected PM seems to try preparing the NZD/USD traders ahead of the much-anticipated RBNZ rate cut, up for the next week.
The preliminary readings of the ANZ Business Confidence and Activity Outlook for November couldn’t portray an optimistic scenario as the former slipped below -15.5 forecast to -15.6 versus the later ones’ easing from 4.7% prior to 4.6%.
Market’s risk-tone remains compressed as S&P 500 Futures print mild losses despite Wall Street’s upbeat performance whereas the US 10-year Treasury yields stay downbeat below 0.80% by press time. The recent challenges to Pennsylvania’s ballot-counting by US President Donald Trump and the team likely probe the risk-takers who cheer Joe Biden’s nearness to the presidency after Michigan victory.
While the US election updates are likely to remain as the key driver for the NZD/USD pair, today’s monetary policy meeting by the US Federal Reserve will also be important to watch.
Read: Fed Preview: Powell set to see glass half full, unless he has depressing NFP data
Technical analysis
A six-week-old rising channel formation on the daily chart keeps NZD/USD buyers hopeful.
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