Newzealand Dollar edged lower on Tuesday the most in G10 before recovering losses after the Reserve Bank of New Zealand (RBNZ) set Newzealand’s wellbeing as the longer-term target. And also the concerns of new coronavirus outbreaks in the region could undercut an economic recovery even as robust momentum in the United States prompts the Federal Reserve to contemplate a quicker exit from accommodative policy.

The New Zealand government has announced that the travel bubble with Australia will resume with South Australia, ACT, Tasmania and Victoria on July 5. The bubble was paused on the weekend in response to the growing number of cases being reported across Australia. New Zealand had earlier decided to close the travel bubble to New South Wales until July 7.

New Zealand’s COVID Response Minister Chris Hipkins today said travellers from SA, ACT, Tasmania or Victoria, to be eligible to fly, must not have been in NSW since June 22 or Queensland, the NT or WA from June 26. “The cabinet agreed that partially lifting the pause was the appropriate course of action,” Mr Hipkins told a news conference. “The health advice is that the spread of COVID-19 in these parts of Australia has been contained at this point,” he said.

Investors are also keen at U.S. consumer confidence data on Tuesday as well as the Institute for Supply Management’s manufacturing index on Thursday for clues as to where interest rates are headed. The US dollar have benefited from some safe-haven demand driven by concerns over the spread of the Delta virus strain.

NZD/USD 4 Hour Chart:

Support: 0.7020 (S1), 0.6999 (S2), 0.6966 (S3).

Resistance: 0.7073 (R1), 0.7106 (R2), 0.7127 (R3).

Among this the kiwi pair under pressure among US Consumer confidence data. We expect a bearish trend for NZDUSD.