Following its initial drop to 0.6000, NZD/USD probes intraday high of 0.6010, amid the early Asian session on Friday. The kiwi pair recently reacted to the downbeat New Zealand Business NZ PMI data for April. Also exerting downside pressure on the quote could be the broad US dollar strength hand the risk aversion wave.
Business NZ PMI slips below 50.6 forecasts and 53.2 previous to the record low of 26.1 in April. The business sentiment gauge slipped to 36.1 during the year 2008.
The US dollar remains bid as Fed policymakers, Dallas Fed President Robert Kaplan being the latest, keeps trying to rule out the negative interest rates.
Also favoring the greenback could be hopes of the additional stimulus, as cited by Senate Majority Leader McConnell as well as Fed’s Kaplan. However, nothing could be more important than US President Donald Trump’s surprise favor for the strong dollar on Thursday, which offered the broad greenback gains.
As far as the risks are concerned, US policymakers keep trying to hurt China in one way or the other. The latest attack comes from the Senate where the administration is empowered to levy sanctions on Chinese officials involved in the Xinjiang case. It should be noted that a Republican bill is still pending in the Senate that will enable President Trump to sanction China if it doesn’t cooperate in virus outbreak investigation.
NZD/USD SHORT (Sell)
ENTER AT: 0.5988