NZD/USD drops back to 0.5850 despite upbeat RBNZ comments
|- NZD/USD ignores upbeat RBNZ official’s remarks.
- Dollar strength and oil-price weakness weigh on the Kiwi.
- Coronavirus updated led risk sentiment to dominate.
Having faced rejection around 0.5880 once again, NZD/USD is losing nearly 30-pips and tests the 0.5850 support area, as the US dollar continues to rule across the board.
At the time of writing, the Kiwi trades 0.22% lower at 0.5856 while the US dollar index prints a fresh eight-day high of 100.85, up 0.27% on a daily basis.
The greenback continues to draw haven bids, as markets prefer tp hold the US currency in times of the coronavirus pandemic induced global economic uncertainty and disruptions. The virus spread is unabated, as most major governments have announced lockdowns to contain the infections.
Adding to the downward momentum, the latest slump in oil prices, amid growing uncertainty over the global supply and OPEC+ meeting pushed back, weighs negatively on resource-linked NZD.
Meanwhile, the major ignored the upbeat comments from the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr and Chief Economist Yuong Ha, as the sentiment continues to remain driven by the dollar dynamics, in the face of the virus crisis.
NZD/USD technical levels to watch
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.