It has been reported that the Reserve Bank of New Zealand (RBNZ) has made some adjustments to its existing pandemic statutes to allow banks to pay out dividends from as much as 50% of their earnings.
This move represents a significant easing of pandemic-related regulations which central banks across the world passed so that banks could retain sufficient liquidity to ride out the coronavirus pandemic. Satisfied that the worst of the pandemic’s economic impact has passed, the RBNZ has made this move and could lift the restrictions fully by July 2022, subject to the stability of economic conditions.
The NZD/USD pair remains under pressure as the strength in the US Dollar continues to be the overriding market fundamental of the moment.
NZDUSD Technical Levels to Watch
The NZD/USD pair is attempting a correction from the downside move witnessed in the last two weeks.
This corrective move has to break beyond the immediate barrier at 0.70009, which is a psychological resistance level. If bulls can cross this barrier, we could see a potential push towards 0.70541. An additional barrier at 0.71004 marks another psychological resistance that bulls need to overcome to gain back what the Kiwi has lost in the last ten days.
On the flip side, a rejection at 0.70009 sets up a potential continuation of the downside move, targeting recent lows at 0.69722 and 0.69431.