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.
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.
NZD/USD LONG (Buy)
ENTER AT: 0.67957