NZD/USD: RBNZ’s Orr-led recovery capped by 0.6400 ahead of Powell


  • Stronger US dollar index keeps the NZD/USD recovery in check, as Treasury yields rally.
  • Kiwi off multi-year lows on RBNZ’s Governor Orr comments, risk-on sentiment.
  • Markets await Fed Chair Powell’s testimony for fresh dollar trades.

The NZD/USD pair is seen consolidating the Asian recovery below the 0.64 handle, fuelled by unexpectedly less dovish comments from the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr delivered earlier today.

RBNZ Orr: Rate cut reduces probability of having to do more later

Orr said that the central bank’s 50 bps rate cut reduces probably of having to do more while downplaying expectations of the bank resorting to unconventional monetary policy tools.

On Orr’s comments, the Kiwi caught a strong bid-wave and staged a recovery from near 2.5-year lows of 0.6362. Markets shrugged off a drop in New Zealand’s Q2 Retail Sales numbers and paid no heed to RBNZ policymaker Hawkesby’s concerns on low price pressures.

However, the recovery attempts continue to run into stiff resistances stacked up just below the 0.64 handle, keeping the prices trapped in a narrow range around the 0.6785/80 level. The upside lacks follow-through, in the wake of a broad-based rally in the US dollar. The greenback is seen tracking the surge in the Treasury yields across the curve amid a better risk environment.

Further, the bulls remain cautious ahead of a slew of Fedspeak, with Fed Chair Powell’s speech to remain the main focal point. Markets await fresh hints on the US interest rates outlook amid looming US-China trade risks and an improving US economy.

NZD/USD Technical levels to watch

NZD/USD

Overview
Today last price 0.6380
Today Daily Change 0.0013
Today Daily Change % 0.20
Today daily open 0.6364
 
Trends
Daily SMA20 0.649
Daily SMA50 0.659
Daily SMA100 0.6605
Daily SMA200 0.6709
Levels
Previous Daily High 0.6409
Previous Daily Low 0.6361
Previous Weekly High 0.6475
Previous Weekly Low 0.6421
Previous Monthly High 0.6792
Previous Monthly Low 0.6543
Daily Fibonacci 38.2% 0.6379
Daily Fibonacci 61.8% 0.6391
Daily Pivot Point S1 0.6347
Daily Pivot Point S2 0.633
Daily Pivot Point S3 0.6299
Daily Pivot Point R1 0.6395
Daily Pivot Point R2 0.6426
Daily Pivot Point R3 0.6443

 

 

 

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