• NZD/USD catches aggressive bids after the RBNZ’s expected 50 bps rate cut on Wednesday.
• The USD struggles near the weekly low amid sliding US bond yields and supports the pair.
• Trade war concerns might cap the risk-sensitive Kiwi ahead of the crucial US inflation data. 

The NZD/USD pair builds on the overnight bounce from sub-0.5800 levels, or a fresh year-to-date low and gains strong positive traction on Wednesday after the Reserve Bank of New Zealand (RBNZ) announced its policy decision. The intraday move up remains uninterrupted through the first half of the European session and lifts spot prices to the 0.5900 mark, or a one-week high in the last hour. 

As was widely anticipated, the RBNZ lowered the Official Cash Rate (OCR) by 50 basis points (bps), from 4.75% to 4.25% at the conclusion of the November policy meeting. In the post-meeting press conference, RBNZ Governor Adrian Orr said there had been little discussion on cutting rates by anything other than 50 bps. This might have disappointed some investors anticipating a more aggressive easing, which, in turn, boosts the New Zealand Dollar (NZD) and prompts aggressive intraday short-covering around the NZD/USD pair.