NZD/USD jumps 20-pips even as RBNZ’s Orr stays ready for additional easing

NZD/USD defies the early-Asian losses while bouncing off 0.6757.
RBNZ’s Orr discusses multiple options to combat the monetary easing need if any.
Fresh noise concerning the US-China relations probes the risk-on mood cheering vaccine hopes.
Aussie GDP, US ADP will be the key data to watch, risk catalysts remain on the driver’s seat.

Anil Panchal FXStreet

NZD/USD takes the bids near the intraday high of 0.6775, up 0.20% on a day, during the early Wednesday. The Kiwi pair recently surged after the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr cited readiness to use unconventional monetary policy tools if needed.

In his latest speech, RBNZ Governor Orr said, (the bank is) “Actively preparing a package of additional monetary policy tools to use if needed.” While citing the choices the central banker mentioned, “options include negative wholesale interest rates, further Q, direct lending to banks, and ongoing forward guidance about our intentions.” Following the news, NZD/USD not only reversed the early-Asian losses but refreshed the intraday high as traders seem to prepare for a big move by the New Zealand’s central bank.

Read: RBNZ Governor Orr: Actively preparing a package of additional monetary policy tools to use if needed

During the initial day, the quote seems to follow the updates suggesting continuous tension between the US and China. Recently, US Secretary of State Mike Pompeo cited cold war conditions with Beijing. Afterward, the US State Department mentioned that it watches over the China-India border tension, the same may not be welcomed by the dragon nation.

Elsewhere, the news that the global pharmaceutical leader AstraZeneca begins final trials on the coronavirus (COVID-19) vaccine joins receding virus numbers to keep the market players hopeful. As a result, S&P 500 Futures stay positive around the record top beyond 3,500 whereas New Zealand’s NZX 50 trims the early-day gains but gains 0.60% by the press time.

Looking forward, the second-quarter (Q2) GDP details from the largest customer Australia and the US ADP Employment Change will be the key to watch for the NZD/USD pair traders. Should the Aussie GDP match the -6.0% forecast and the US ADP data prove the forecast of 950K right, the quote may step back from the highest in 14 months.

Technical analysis

Unless breaking July month’s high of 0.6716, sellers are less likely to take entries, Alternatively, July 219 top near 0.6750 may guard the immediate upside.

additional important levels

Overview
Today last price	0.6758
Today Daily Change	0.0000
Today Daily Change %	0.00%
Today daily open	0.6758

Trends
Daily SMA20	0.6607
Daily SMA50	0.6581
Daily SMA100	0.639
Daily SMA200	0.6381

Levels
Previous Daily High	0.678
Previous Daily Low	0.6728
Previous Weekly High	0.6744
Previous Weekly Low	0.6514
Previous Monthly High	0.6764
Previous Monthly Low	0.6488
Daily Fibonacci 38.2%	0.6761
Daily Fibonacci 61.8%	0.6748
Daily Pivot Point S1	0.6731
Daily Pivot Point S2	0.6704
Daily Pivot Point S3	0.6679
Daily Pivot Point R1	0.6783
Daily Pivot Point R2	0.6808
Daily Pivot Point R3	0.6835

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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