- The NZD continues to recover lost ground after RBNZ Governor Orr's comments.
- The surge in China's April imports may help Kiwi erase post-RBNZ drop.
NZD/USD's recovery from the session low of 0.6525 printed immediately after the RBNZ rate cut announcement earlier today continues with the spot currently trading at 0.6585.
RBNZ's Governor Adrian Orr was out on the wires soon before press time stating that there are significant uncertainties around the rate track in New Zealand and the US-China trade war is one of the major concerns of the central bank. Orr added further that he is surprised by the downturn in business sentiment and consumer spending.
Orr's comments may bolster expectations of another rate cut in August, complicating Kiwi's recovery.
However, China April trade data released a few minutes ago offered good news in the form of a 10% year-on-year spike in imports in CNY terms, a sign of an uptick in domestic demand. As a result, Kiwi may rise back to the pre-RBNZ level of 0.66.
That said, the outlook would remain bearish as long as the descending trendline connecting March 26 and April 17 highs is intact.
Trend: Bullish above trendline resistance
- R3 0.667
- R2 0.6651
- R1 0.6625
- PP 0.6606
- S1 0.658
- S2 0.6561
- S3 0.6535
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.