FxWirePro: NZD/USD reverses RBNZ-led downside after Governor Orr's cautiously optimistic comments

NZD/USD chart - Trading View 

NZD/USD was trading 0.14% higher on the day at 0.6927 at around 06:20 GMT, bias lower.

Earlier in the day, RBNZ surprised markets while keeping the benchmark interest rates unchanged, versus a widely expected 0.25% rate hike.

Kiwi plummeted across the board after the RBNZ's dovish surprise. But the pair quickly reversed losses and edged higher on Governor Orr's cautious optimism.

Reserve Bank of New Zealand (RBNZ) Governor Orr at a speech earlier today kept the rate hike concerns on the table.

Orr said, “Lockdown is a concern, but less concerned than would have been last year,” supporting bulls in the pair.

The rebound on the pair could also be associated with the US dollar’s weakness ahead of the Federal Open Market Committee (FOMC) Minutes.

Data from the U.S. overnight showed Retail Sales for July dropped below -0.3% expected and +0.7% previous to -1.1% MoM.

Apart from the virus concerns, geopolitical tension in Afghanistan and stimulus deadlock in the US also weigh on the risk appetite, denting the pair. 

Technical bias is bearish. The pair has formed a Doji at trendline support. Decisive break below will plummet prices further. 

Major support aligns at 110-week EMA at 0.6845. Break below will drag the pair lower to 200-week MA at 0.6758.