NZD/USD extends corrective pullback from the intraday low of 0.7070, currently around 0.7082, during the early Tuesday. The pair recently benefited from China’s November month activity numbers. The same help the kiwi buyers to battle the dovish comments from the Reserve Bank of New Zealand (RBNZ), published before a few hours.
China’s Industrial Production matches the 7.0% forecast while Retail Sales eases below 5.2% to 5.0% YoY. Even so, both these figures cross their respective previous readings of 6.9% and 4.3%.
During the initial Asian session, New Zealand’s (NZ) fourth quarter (Q4) Westpac Consumer Survey crossed 95.10 prior with 106.00 figures.
However, the bulls couldn’t cheer the early-day economics as the RBNZ struck a dovish tone while citing economic fears and risks to the downside.
It should, however, be noted that the bears remain chained as market sentiment improved amid hopes of further stimulus from the US. The reason could be traced from US President-elect Joe Biden’s ability to secure the needed 270 votes after winning the battle versus President Donald Trump in the Electoral College. Also increasing the odds of the much-awaited stimulus are recently optimistic comments from US House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin.
On the contrary, fears of the fresh variant of the coronavirus (COVID-19), as signaled by the UK’s Health Minister Matt Hancock, join increasing numbers of local lockdowns and the western tussles with China.
Against this backdrop, S&P 500 Futures rise 0.15% whereas stocks in New Zealand rise 0.55% by press time.
With no major data left for publishing during today’s Asian session. NZD/USD traders will keep their eyes on the risk catalysts like virus updates and stimulus headlines for fresh impetus. Though, major attention will be given to Wednesday’s Fed decision and Thursday’s New Zealand Q4 GDP, expected +13.5% versus -12.2% QoQ prior.
NZD/USD Long (Buy)
ENTER AT: 0.70690