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  • GDT price index rises 0.4% in the latest auction.
  • USD continues to find demand in the risk-averse atmosphere.
  • Coming up: RBNZ’s interest rate decision.

The NZD/USD pair, which rose to a daily high of 0.6630 in the early Asian session boosted by the sharp upsurge seen in the AUD/USD pair, failed to hold above the 0.66 mark and was last seen trading at 0.6594, losing 0.26% on the day. Although the GDP price index in New Zealand rose 0.4% in the latest bi-weekly auction to beat the market expectation for a decline of 1.1%, the kiwi struggled to gather strength as investors continue to stay away from antipodeans amid the uncertainty surrounding the U.S.-China trade dispute.

On the other hand, the greenback benefits from the risk-off mood for the second straight day and forces the pair to remain under bearish pressure.

The only data from the U.S. today showed that the economic optimism improved in May with the IBD/TIPP’s Economic Optimism Index advancing to its highest level in more than 15 years at 58.6. The US Dollar Index, which closed the first day of the week flat, was last up 0.1% on a daily basis at 97.65.

On Tuesday, the RBNZ is scheduled to publish its monetary policy statement and announce its interest rate decision. Previewing this event,  “In our view the data hasn’t been supportive of a cut. The surprise shift to an easing bias on 27 March was about risks, not a string of data disappointments. The new MPC may choose to pause and officially sanction Orr’s easing bias. Overall we recommend a light position into the 8 May meeting,” said TD Securities analysts.

Technical levels to watch for