- NZD/USD bounces off intraday low after PBOC rate cut.
- The pair earlier failed to cheer NZ CPI data amid fresh risk aversion.
- US coronavirus numbers, challenges to the economic restart question the trade sentiment.
Despite bouncing off intraday low of 0.6008, NZD/USD remains under pressure, down 0.18% on a day around 0.6022, during the Asian session on Monday.
The pair recently took clues from the People’s Bank of China’s (PBOC) rate cuts. The PBOC recently cut one and five-year loan prime rates to 3.85% and 4.65% versus respective prior of 4.05% and 4.75%.
Earlier during the day, New Zealand’s first quarter (Q1) Consumer Price Index (CPI) rose to 2.5% on YoY and 0.8% QoQ versus the respective downbeat forecasts of 1.8% and 0.3% respectively.
Even so, surging coronavirus (COVID-19) numbers from the US, as per Reuters, as well as a lack of agreement to follow the Trump administration’s phased plan for economic restoration, seems to keep the risk-tone heavy.
While portraying the same, the US 10-year treasury yield drop to 0.64% whereas Japan’s NIKKEI declines more than 1.0% to 19,688 by the press time.
Given the lack of major data/events on the economic calendar, except for Chicago Fed National Activity Index, traders will keep eyes on the virus updates for fresh impulse.
Buyers and sellers jostle between 21-day and 50-day SMA, occupying the area above 0.5965 and below 0.6125 levels respectively.