NZD/USD testing bull's comittments at key support

• RBNZ coming back into focus ahead of the MPS in a couple of weeks time.
• NZD/USD under pressure to 4-hour support in a bearish environment. 

NZD/USD is currently trading at 0.7206 and down some 0.12% at the time of writing, trading between a low of 0.7206 and 0.7218.

In his testimony yesterday, the Reserve Bank of New Zealand Governor Adrian Orr was warning that the COVID risks remain which is taking some wind out of the bird's wings. 

The demand pulse is in New Zealand is in a much better position than anyone dared hope, analysts at ANZ bank said.

''The RBNZ will welcome this, but continue to highlight the need for cautious patience. Medium-term challenges to the outlook remain, and the RBNZ will need more assurance that its targets are firmly in view''.

We have the MPS in a couple of weeks, and the analysts explained that the RBNZ ''will want to acknowledge the good news for what it is, but not signal imminent tightening and unravel recent progress''.

Meanwhile, the market got confirmation on Wednesday that the Federal Reserve will be patient with monetary accommodation to ensure that inflation picks up.

The US Consumer Price Index missed expectations in the core measure, with the monthly rate unchanged (compared with 0.2% m/m expected) and the annual rate falling from 1.6% to 1.4% YoY.

The Fed's Chair Jerome Powell spoke at the Economic Forum and said the US was “still very far” from a strong labour market.

He said that the “real” unemployment rate is 10%, not 6.3%, which makes for a bullish environment for the antipodeans while te US dollar weakens.