NZD/USD takes offers around 0.6995, down 0.30% Intraday as poking the weekly bottom amid Thursday’s Asian session. In doing so, the Kiwi pair leads G10 losers, unfortunately, due to the US dollar’s sustained strength and the coronavirus (COVID-19) woes. Also backing the bears could be an absence of bullish headlines conveying hopes of the RBNZ’s rate hikes, which did favor the quote the previous day. US dollar remains on the front foot as the FOMC minutes failed to provide any clear guidance on future monetary policy actions. That said, the US dollar index (DXY) seesaws around the highest since early April, tested on Wednesday, as flashing 92.73 as a quote.
Other than the indecision among the Fed policymakers, coupled with an absence of any direct hints suggesting rate hike, the escalating covid woes also weigh on the market sentiment and put a safe-haven bid under the US dollar. It’s worth mentioning that various top-tier banks backed the hopes of the Reserve Bank of New Zealand’s (RBNZ) rate hike during late 2021 the previous day while citing upbeat quarterly business survey outlook and the government’s ability to tame the pandemic at home.
Given the lack of major data/events, coupled with risk-off mood-backed US dollar strength, NZD/USD traders should keep their eyes on the qualitative catalysts for fresh impulse.
NZD/USD Short (Sell)
Enter at: 0.69690