- NZD/USD bulls losing their grip due to risk-off tones elsewhere and RBNZ dovishness.
- RBNZ preparing for negative rates was “not a bluff” and that banks are ready for it'.
NZD/USD is entering early Asia following a bid despite the lack of risk appetite on Wall Street.
At the time of writing, NZD/USD is trading at 0.6656 between a range of 0.6643 and 0.6682.
All three major benchmarks were reeling on Wednesday due to the lack of traction on a new fiscal stimulus package and the relentless spread of coronavirus.
Treasury Secretary Steven Mnuchin made comments that a deal would not likely be made before the vote.
The statement has added to fragile sentiment as the market's concerns for the spread of virus have ramped up this week.
"At this point getting something done before the election and executing on that would be difficult, just given where we are and the level of detail, but we're going to try to continue to work through these issues," Mnuchin said at a conference sponsored by the Milken Institute.
Meanwhile, Germany's Angel Merkel has crossed the wires confirming the spread of the coronavirus, stating, ''We are in a serious stage of coronavirus pandemic.''
Domestically, ''we got another slew of uber-dovish RBNZ comments yesterday reinforcing the 'go hard, go early' message, alongside the comment that preparing for negative rates was “not a bluff” and that banks are ready for it'', analysts at ANZ bank explained.
''All of that helps further colour the negative backdrop, but with plenty of easing already priced in here, the FLP being viewed by the market as a potential reason for the RBNZ to slow the easing timetable, and US election polls shifting, upside risks look to have the upper hand.''
NZD/USD levels
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 stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.