NZD/USD stuck in daily range above 0.69, eyes on RBNZ
|- RBNZ is expected to keep policy rate steady at 1.75%.
- Greenback gathers strength despite mixed data from the U.S.
- US Dollar Index clings to gains near 96.70.
The NZD/USD pair inched higher in the NA session and moved into the upper half of its daily range. As of writing, the pair was trading at 0.6916, adding 0.12% on a daily basis.
Although the greenback gathered strength in the second half of the day, the kiwi was able to show resilience supported by the improved market sentiment and commodities' upbeat performance. Moreover, investors seem to be opting out to stay on the sidelines ahead of the RBNZ's announcements.
Previewing this event, "Our economists also expect the RBNZ to repeat the key messages from the February MPS that the OCR will remain unchanged through 2019 and 2020 and that the next (move)could be 'up or down'," UBS analysts said. "We still see upside in NZD as the market remains too dovishly priced relative to the RBNZ's tone and as domestic fundamentals remain resilient.”
Meanwhile, the US Dollar Index is clinging to its daily gains near 96.70 despite today's mixed macroeconomic data releases. However, the fact that the 10-year T-bond yield erased its daily recovery gains and turned red on the day in the last hour suggests that the rebound was a technical correction and the greenback is likely to stay vulnerable against its major rivals amid concerns over the yield curve inversion, which could be a sign of an upcoming recession in the U.S.
Key technical levels
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