NZD/USD bid around 0.5925, risks remain skewed to the downside
|- NZD/USD has added 16 pips in Asia despite the risk-off tone in stocks.
- Lingering fears of a prolonged recession could reverse gains seen in NZD.
- The US initial jobless claims are expected to hit another record.
While the New Zealand dollar is pushing higher against the greenback in Asia, the risks for NZD/USD remain skewed to the downside amid risk-off action in the stock markets.
Flashing green
The pair is currently trading at 0.5925, representing a 0.18% gain on the day. A positive close on Thursday would put an end to the three-day losing streak.
That said, the gains seen at press time may not last long, as the Asain equities are tracking Wall Street lower. Japan's Nikkei and South Korea's are currently down 1.7% and 0.4%, respectively. Meanwhile, stocks in Australia, China, and Hong Kong are also trading in the red. The Dow Jones Industrial Average index fell by over 4 percent on Wednesday.
The sentiment remains risk-averse as investor concerns regarding the possibility of a prolonged coronavirus-led recession rising with each passing day.
The US initial jobless claims for the week ended March 27 is expected to show the number of people filing first-time claims for state unemployment insurance exceeded 4.45 million versus preceding week's figure of 3.283 million.
The data may bolster recession fears, reviving the global dash for cash, mainly US dollars, seen a few weeks ago.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.