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
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
