New Zealand covid outbreak updates and RBNZ risks in focus

Ross J Burland FXStreet

Since the announcement of a fresh nationwide lockdown on the back of the first report of a new covid case in six months, New Zealand has now recorded six new cases of coronavirus.

Genome sequencing tests on the first positive case recorded in Auckland on Tuesday was linked to the outbreak in New South Wales, Australia, Prime Minister Jacinda Ardern said in a news conference.

New Zealand PM Arden says genome sequencing shows positive cases linked to the outbreak in Australia.
New Zealand reports 2 new cases of covid-19.
New Zealand health chief Bloomfield says can expect 50-100 cases in the latest outbreak.

The update comes ahead of the Reserve Bank of New Zealand at the top of the hour.

The risk is that the RBNZ holds off from hiking today followed by a plethora of uncertainty in regards to additional hikes to follow pertaining to the risks of the delta variant.

Meanwhile, there is a chance that the central bank will hike and the upside trajectory on the hourly chart for the immediate and near term could look something like as follows for NZD/USD:

On the other hand, there are downside risks on a dovish hike or hold and the daily chart's downside case is therefore compelling:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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