- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.