- Less dovish RBNZ statement, upbeat market sentiment pleases NZD/USD buyers.
- Details from G20, New Zealand ANZ survey data awaited for fresh clues.
With the RBNZ statement differing from its global central bank peers and market optimism surrounding G20 pleasing commodity-linked currencies, the NZD/USD stays modestly flat near 10-week high while taking the rounds to 0.6680 amid initial Asian trading session on Thursday.
The Reserve Bank of New Zealand (RBNZ) not only met the market’s wide expectations of no rate change announcement but also sound less pessimistic in its statement at the recent monetary policy meeting.
The central bank joined the latest a slew of less dovish comments from the US Federal Reserve policymakers that have renewed trade sentiment off-late. Though, sluggish data from the US and the US President Donald Trump’s criticism to the US central bank’s action kept a lid on investors.
Additionally, the US Treasury Secretary Steve Mnuchin’s comment that the US-China trade deal is 90% complete further strengthens the investor confidence of the much-awaited trade talk between the global powers at the sidelines of G20 meeting in Japan.
The global barometer for risk sentiment, the US 10-year treasury yields, recovered to 2.05% by the press time.
Other than developments from G20, second-tier data from New Zealand line ANZ Activity Outlook and Business Confidence for the current month, followed by the US final gross domestic product (GDP) reading for Q1 2019 and pending home sales.
The ANZ Business Confidence is expected to recover from -32.0 to -22.7 but Activity Outlook might soften to 7.8% from 8.5% previous readouts. On the other hand, the US GDP may match an initial forecast of 3.1% annualized (QoQ) whereas pending home sales might recover to 1.0% from -1.5% earlier drop.
Technical Analysis
Having breached 0.6660/70 upside barrier, 200-day simple moving average (SMA) level of 0.6711 is likely a landmark for the Kiwi buyers while a failure to hold the latest strength can reprint 0.6615 and 0.6580 on the chart.
Share
