NZD/USD: New Zealand data join COVID-19 updates to please bears below 0.6300
|- NZD/USD drops for the third day in a row, tests the lowest since October 16, 2019.
- NZ trade balance and ANZ stats register down results.
- US President Trump, coronavirus updates from South Korea/China favor the risk-off.
NZD/USD declines to 0.6288, -0.12%, by the press time of early Thursday. The pair recently dropped to the fresh low since the mid-October 2019 as downbeat New Zealand (NZ) data at home as well as coronavirus (COVID-19) fears continue the bearish momentum.
The early-day release of January month Trade Balance was the trigger to the day’s fresh selling followed by US President Donald Trump’s coronavirus speech. Extending the fall off-late were the Business Confidence and Activity outlook numbers for January from the Australia and New Zealand Banking Group (ANZ).
Even so, the main catalyst for the pair’s downpour could be the COVID-19 as increasing cases from South Korea and the run of first cases among many destinations weigh on the risk-tone.
That said, the US 10-year treasury yields recover one basis point to 1.319% from the record low flashed Wednesday while S&P 500 Futures drops 0.80% to 3,084 by the press time.
Moving on, a heavy economic calendar in the US will join coronavirus updates to offer another busy day to the kiwi traders. However, the bearish momentum is likely to prevail.
Technical Analysis
November 2019 bottom close to 0.6315 acts as the immediate resistance for the pair while lows marked during October 2019 around 0.6240 and 0.6200 can lure the sellers during the quote’s further weakness.
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