NZD/USD regains 0.6100 after RBNZ’s Orr defies negative rates for now
|- NZD/USD prints three-day winning streak so far in Asia.
- RBNZ’s Orr said not to go to negative rate at this point.
- US-China tussle keeps offering mixed signals.
- FOMC minutes, trade/virus news can offer fresh impulse.
Following upbeat comments from the RBNZ Governor Adrian Orr, NZD/USD gains fresh bid to the intraday high of 0.6100, up 0.32% on a day, during the initial Tokyo trading on Wednesday.
During his Bloomberg TC interview, the New Zealand central banker said that he is prepared to go to a negative rate but a lot later.
In addition to the upbeat comments, early Asian release of the New Zealand Food Price Index, 1.0% versus 0.7% prior, also favors the Kiwi pair’s run-up. Furthermore, New Zealand GDP Price Index also grew beyond -0.8% prior readings to 1.0% on late-Tuesday and flashed upbeat signals for the quote.
On the US-China issue, the White House adviser Larry Kudlow said US President is saying he was not tearing China trade deal. However, Bloomberg’s news suggesting the Senate Republicans’ push for investigations into China’s role in the global virus outbreak portrays a different scenario.
Market’s risk-tone remains sluggish with the US 10-year Treasury yields staying weak below 0.70% whereas S&P 500 Futures and Japan’s NIKKEI register mild gains by the press time.
Given the lack of major data/events on the calendar, except for the People’s Bank of China’s (PBOC) rate decision, trades may keep eyes on the trade/virus updates for fresh direction. It’s worth mentioning that the PBOC recently kept its Medium-Term Lending Facility rates unchanged.
Technical analysis
A sustained break above 50-day EMA, currently near 0.6075, enables the bulls to target the monthly high of 0.6157 ahead of challenging 100-day EMA level of 0.6173.
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