The People’s Bank of China (PBOC) keeps one-year Loan Prime Rate (LPR) unchanged at 3.85% in June and maintains the five-year LPR at 4.65%. During the last week, the PBOC cut its 14-day reverse repo rate in a surprise move.

Credit card spending of New Zealand is -21.1% in June which is less than -49.4% in May. Some of the highlights are Total monthly credit card billings in New Zealand rose 54 percent to $3.2 billion from April to May, but this is still 21 percent lower than May 2019. Billings in New Zealand on overseas-issued cards increased 71 percent to $0.28 billion. Billings in New Zealand on domestically-issued cards increased 53 percent to $3.0 billion, but this is still 16 percent lower than May 2019

New Zealand’s successful battle with the corona virus pandemic creates positive sentiments among the traders but the numbers suggest one of the world’s strictest lock-downs that kept people at home and shuttered most businesses may have had a tremendous negative impact on the economy.

President Donald Trump’s refrain from announcing sanctions on the Chinese policymakers involved in the Xinjiang issue, Latest virus statistics from mainland China and Beijing, The latest corona virus increasing cases also create a fear of virus wave 2.0 spread creates a riskier situation in the market. Also contributing to the risk is the China’s turning down of US meat from Tyson and US Secretary of State Mike Pompeo’s discussion with allies over measures taken against China. Adding to it, geopolitical tussles in Korea and between India and China create an additional burden on the market’s risk-tone sentiment.

 NZD/USD 4 Hours Chart:

Support:  0.6386 (S1), 0.6364 (S2), 0.6326 (S3).

Resistance:  0.6443 (R1), 0.6478 (R2), 0.6500 (R3).

Amid catalysts creating a risk-tone sentiment, NZD/USD shows a short term uptrend as a response to PBOC interest rate and credit card spending.