AUD/NZD drops to seven-month low as RBNZ’s Hawkesby, China rock the boat
|- AUD/NZD prints five-day losing streak, extends the previous day’s heavy downside.
- RBNZ’s Hawkesby defies rate cut, cites no need for more stimulus.
- China bans Victorian timber logs indefinitely, US keeps Hong Kong crackdown.
AUD/NZD declines to 1.0547, currently down 0.12% intraday near 1.0558, during the early Thursday’s trading. The pair marked the heavies drop in right months the previous day on RBNZ’s moves while the latest declines to the fresh low since late-April could be traced to the comments from the RBNZ policymakers and also from China.
RBNZ’s Assistant Governor Christian Hawksby backs the central bank’s hesitance towards cutting the negative rates by defying any such moves at least till March 2021. The policymakers ruled out the need for extra stimulus during early Asia.
On the other hand, China keeps dislike for the Australian push to inquiry alleging the Asian leader’s negligence caused the coronavirus (COVID-19) outbreak. After initially raising bars for Australian wine, iron ore and barley, the dragon nation recently suspended Victorian timber logs indefinitely.
It should be noted that the challenges to the risk, backed by the jump in the US coronavirus (COVID-19) cases also weigh on the pair. Though, the vaccine hopes are trying to placate the bears.
Against this backdrop, shares in Australia turn negative while NZX 50 trims the early day gains. Further, the US 10-year Treasury yields and S&P 500 Futures portray mild losses.
Moving on, the RBNZ’s bullish bias may keep the AUD/NZD pair bears hopeful unless the market sentiment recovers.
Technical analysis
A clear break below the July month’s low of 1.0558, AUD/NZD sellers target March’s peak surrounding 1.0535 during the further downside.
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