NZD/USD makes a new low as markets brace for BoJ rate call
- Kiwi drooping in Asia, making a new low for the month.
- Markets are getting edgy ahead of the BoJ's rate call.
The Kiwi knocked into a fresh low for April, with the NZD/USD striking 0.7050 in Tokyo's early Friday session before rebounding back into the 0.7065 region.
Friday is focused entirely on the Bank of Japan (BoJ) with their impending Rate Decision and outlook report. The BoJ is widely expected to remain frozen on rates well into the future, but traders are still looking for hints about possible near-future plans by the central bank to begin tightening their hyper-easy monetary policy. Japan's Tokyo CPI inflation measure clocked a 0.6%, missing the expected 0.8 and leaving the BoJ incredibly unlikely to engage in any policy tightening, with the central bank's 2% inflation target beginning to look loftier than ever.
Adding further glum feelings to Friday's Asia session is Chinese industrial profits, which only increased by 3.1% YoY, a fair step down from the previous reading of 10.8%.
China industrial profits rise 3.1 percent y/y in March
NZD/USD Levels to watch
The Kiwi's technical outlook is a grim affair, and as FXStreet's own Ross Burland noted earlier, "technicals lean bearish after a new low was set with the RSIs biased down and with an inverted hammer on the monthly sticks with price changing hands below the monthly cloud base. The bears can target 0.7055 (low) and 0.7030. To the upside, 0.7150 guards 0.7185 resistance."