- NZD / USD has so far printed a three-day winning streak in Asia.
- RBNZ’s Orr said not to go at a negative rate at this point.
- The Chinese-American struggle continues to offer mixed signals.
- Minutes from the FOMC, trade / virus news can provide a new impetus.
Following optimistic comments from RBNZ governor Adrian Orr, NZD / USD wins new bid to reach intraday high of 0.6100, up 0.32% on a day, during initial trading in Tokyo Wednesday.
In his interview with Bloomberg TC, the New Zealand central banker said he was ready to switch to a negative rate but much later.
In addition to optimistic comments, the anticipated publication in Asia of the New Zealand food price index, 1.0% against 0.7% previously, also promotes the run-up of the pair Kiwi. In addition, New Zealand’s GDP price index also rose beyond -0.8% from previous readings to 1.0% on Tuesday evening and posted optimistic signals for the listing.
On the US-China issue, White House adviser Larry Kudlow said the President said he was not breaking the trade deal with China. However, news from Bloomberg suggesting pressure from Senate Republicans to investigate China’s role in the global virus epidemic portrays a different scenario.
The risk tone of the market remains sluggish, the yields on the 10-year US Treasury remaining low below 0.70% while the S&P 500 Futures and the Japanese NIKKEI record slight gains at the time of the press.
Given the lack of major calendar data / events, with the exception of the People’s Bank of China (PBOC) rate decision, trades may keep their eyes on trade / virus updates for a new direction. It should be noted that the PBOC has recently kept its medium-term loan facility rates unchanged.
A sustained break above the 50-day EMA, currently close to 0.6075, allows the bulls to aim for the monthly high of 0.6157 before a difficult 100-day EMA level of 0.6173.