NZD/USD: Bears keep reins below 0.7200, RBNZ FSR, New Zealand job eyed
|- NZD/USD trims intraday losses as US Treasury yields recover.
- Early day pessimism fades as trades in Europe, the UK return from a long weekend.
- RBNZ’s FSR, NZ employment figures will be watched closely as policymakers await fresh clues to unveil their next move.
- US data, risk catalysts may offer intermediate directions.
NZD/USD seesaws around 0.7170, down 0.42% on a day ahead of Tuesday’s European session. In doing so, the kiwi pair struggles to recover from the day’s low amid mixed sentiment.
Although recent pullback of the US dollar index (DXY) ahead of the European and the British traders’ return seems to have backed the latest corrective pullback, NZD/USD sellers remain cautious ahead of the key data/events scheduled for publishing on early Wednesday for the local markets.
That said, fears of the coronavirus (COVID-19) woes in Asia seem to battle the cautious optimism in the West, as well as in Australia, to confuse market players during Tuesday.
Against this backdrop, S&P 500 Futures lick its wounds while the DXY eases from the intraday top by the press time.
Moving on, the Reserve Bank of New Zealand’s (RBNZ) bi-annual Financial Stability Report (FSR) will offer clues relating to the New Zealand (NZ) central bank’s outlook for inflation, growth, and other economic conditions that may help them take future policy actions. Following that, the Q1 jobs report will be crucial to watch.
While the FSR may repeat the Kiwi central bank’s bullish outlook, mixed forecasts for the scheduled employment data seem to weigh on the NZD/USD prices if matched. Also likely to challenge the kiwi upside is the US dollar’s likely run-up due to the risk-aversion wave led by mixed covid updates from Asia and doubt over global recovery moves.
It’s worth mentioning that the RBNZ Governor Adrian Orr’s press conference, which usually takes place after the FSR report, gets cancelled amid chatters over the policymaker’s weak health conditions.
Technical analysis
Unless breaking the monthly support line around 0.7165, NZD/USD buyers may remain hopeful.
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