NZD/USD remains offered below 0.6000 amid risk-off
|- NZD/USD extends the previous day’s losses.
- Coronavirus fatalities, downbeat US data and market performance heavy the risk-tone.
- Aussie employment numbers, virus updates will be the key to watch.
With no respite from the recent risk-off, NZD/USD stays on the back foot around 0.5985 during the early Asian session on Thursday. The pair previously took a U-turn from the monthly top amid broad US dollar strength, mainly due to its risk-safety allure.
Although US President Donald Trump continues his efforts to convince traders that the US is gradually overcoming the coronavirus (COVID-19) crisis and will restore working soon, pandemic data suggest otherwise.
The latest data from Reuters mentioned that the world’s largest economy registered the biggest single-day increase in new deaths due to the virus, to 30,817 with an increase of 2,371, on Wednesday.
Further to propel the risk-off could be downbeat US data and the pessimistic economic forecasts from the International Monetary Fund (IMF), signaling a -3.0% global GDP for 2020.
As a result, the US bonds rallied and Wall Street marked losses on Wednesday whereas futures linked to S&P 500 and DJI30 flash the red by the press time.
While virus updates keep the driver’s seat, jobs report from the largest customer Australia will be followed for intermediate direction. Even if the forecasts suggest downbeat outcomes due to the pandemic, any upside surprises will have a strong marker reaction than the otherwise case. Following that, New Zealand’s ANZ monthly inflation gauge for March can also be observed ahead of the busy US docket.
Technical analysis
Unless clearing 50-day SMA, currently at 0.6138, sellers remain directed towards 0.5940 comprising 21-day SMA.
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.