NZD/USD spikes after hawkish Orr comments but the sell-off could resume

By Crispus Nyaga8 days ago

  • The NZD/USD jumped on Tuesday after hawkish statement by Adrian Orr.
  • He said that the RBNZ was prepared to tighten market conditions.
  • The pair also rose after the strong New Zealand jobs data.
  • Technical analysis shows that the pair could resume a downward trend.

The NZD/USD pair bounced back after the relatively strong economic data from New Zealand. It rose from the overnight low of 0.7115 to 0.7170.

NZD/USD chart

New Zealand economy rebounding

AD

The New Zealand government was rightly praised for its coronavirus response. The government made swift decisions that led to just 25 deaths and less than 4,000 infections. These actions also helped the New Zealand economy to remain relatively vibrant as its peer countries struggled.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

This economic growth accelerated in the first quarter. According to Statistics New Zealand, the countrys unemployment rate dropped to 4.7% in Q1 from the previous 4.9%. This was a better reading than the median estimate of 4.9%. In the same period, the participation rate rose from 70.20% to 70.4%. Wages also improved, rising by 1.6% year-on-year (YoY). The employment change rose by 0.6%.

Continue read on invezz.com