- A subdued USD demand amid sliding US bond yields helped regain traction.
- The Kiwi got a strong boost from upbeat comments by RBNZ Governor Orr.
- The final US GDP print matched original estimates and did little to influence.
The NZD/USD pair continued scaling higher through the early North-American session on Thursday and refreshed daily tops, around the 0.6325 region post-US GDP.
A combination of supporting factors helped the pair to catch some fresh bids on Thursday – marking its third day of a positive move in the previous four – and quickly recover the previous session’s sharp intraday slide from one-week tops. It is worth mentioning that the pair witnessed a dramatic turnaround on Wednesday and tumbled around 85 pips intraday amid resurgent US Dollar demand.
RBNZ Governor Orr provided a strong lift
With the greenback consolidating the overnight strong gains amid some renewed weakness in the US Treasury bond yields, the Kiwi got a fresh boost from upbeat comments by the Reserve Bank of New Zealand (RBNZ) Governor Orr, saying that the central bank may not require unconventional monetary policy easing and that New Zealand is in a sound position to benefit from the global low rate environment.
This coupled with renewed optimism over a possible resolution of the prolonged US-China trade disputes, supported by the US President Donald Trump’s overnight remarks, and the prevalent risk-on mood further collaborated towards driving flows towards perceived riskier currencies – like the New Zealand Dollar.
On the economic data front, the final US GDP print came in to show that the economic growth stood at 2.0% annualized pace during the second quarter of 2019 and marked a sharp deceleration from the previous quarter’s reading of 3.1%, though matched original estimates and hence, did little to provide any meaningful impetus.
It will now be interesting to see if the bulls are able to capitalize on the positive momentum or the pair once again meets with some fresh supply at higher levels as market participants now look forward to scheduled speeches by influential FOMC members – St. Louis Fed President James Bullard and the Fed Governor Richard Clarida – for a fresh impetus.
Technical levels to watch
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