NZD/USD remains depressed above 0.7000 despite upbeat RBNZ’s Orr, coronavirus news

NZD/USD holds lower ground, down 0.07% around intraday low of 0.7022, heading into Tuesday’s European session. The kiwi pair earlier dropped the most in G10 before recovering losses after the Reserve Bank of New Zealand (RBNZ) set Newzealand’s wellbeing as the longer-term target. Recently, RBNZ Governor Adrian Orr clarified the Statement of Intent (SOI) for 2021 – 2024.

In his speech at the Mindful Money Awards in Auckland, RBNZ’s Orr said, “Economic activity in New Zealand is returning to its pre-COVID-19 levels.”

Read: RBNZ’s Orr: Economic activity in New Zealand is returning to its pre-COVID-19 levels

Earlier in the day, the longer-term SOI praised the RBNZ efforts while Wellington’s reduction in the virus-led alert level to 01 from 02 also tried luring the NZD/USD bulls. However, the risk-off mood in Asia-Pacific and steady Treasury yields back the US dollar buyers and weighs on the quote.

That said, the US dollar index (DXY) consolidates the last week’s pullback from the monthly top amid a second positive day, up 0.08% intraday around 91.95. The coronavirus (COVID-19) strain woes in Asia-Pacific, as well as in the UK, join mixed signals from the US Federal Reserve (Fed) policymakers to put a safe-haven bid under the US dollar.

Amid these plays, stocks futures print mild losses by the press time whereas Asia-Pacific shares trade mixed.

Moving on, RBNZ’s cautious optimism keeps NZD/USD buyers hopeful. Though, a lack of major data/events and downbeat market sentiment could keep dragging the Kiwi pair to the south ahead of Friday’s US Nonfarm Payrolls. Before that, China’s official PMIs, up for publishing on Wednesday, may offer intermediate clues.

Technical analysis

The NZD/USD pair’s U-turn from the 50-SMA on the four-hour chart around 0.70200 and firmer Momentum line test the sellers even if a downward sloping trend line from June 01 near 0.7080 and the 0.7100 threshold guard the pair’s short-term recovery moves.