NZD/USD clings to small gains above 0.5850 as focus shifts to Powell's speech


  • US Dollar Index extends slide, drops to weekly lows below 110.50.
  • Risk rally fades with global equity indexes posting losses on Thursday.
  • FOMC Chairman Powell will make a rare TV appearance at 11:05 GMT.

The NZD/USD pair failed to hold above the 0.5900 handle on Wednesday and closed the day with modest gains near 0.5850. Although the USD continues to weaken against its rivals on Thursday, the souring market sentiment makes it difficult for the pair to extends its rally. As of writing, the pair was up 0.18% on the day at 0.5859.

With the two-day relief rally witnessed in global equity indexes fading on Thursday, the risk-sensitive NZD struggled to find demand. At the moment, major European stock indexes are erasing more than 2% as investors shift their attention to headlines surrounding the coronavirus outbreak.

USD remains on the back foot ahead of key data, Powell speech

On the other hand, the Federal Reserve's unlimited QE and the US Senate's approval of the historic $2 trillion stimulus package weigh on the USD to help the pair stay in the positive territory.

The US Dollar Index, which erased nearly 1.5% since the start of the week, is now at its lowest level in a week at 100.27, down 0.65% on the day.

At 11:05 GMT, FOMC Chairman Jerome Powell will be responding to questions on NBC. Later in the day, weekly Initial Jobless Claims, Q4 Gross Domestic Product and Trade Balance data from the US will be looked upon for fresh impetus.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.5862
Today Daily Change 0.0012
Today Daily Change % 0.21
Today daily open 0.585
 
Trends
Daily SMA20 0.6082
Daily SMA50 0.6315
Daily SMA100 0.6429
Daily SMA200 0.6445
 
Levels
Previous Daily High 0.5913
Previous Daily Low 0.5788
Previous Weekly High 0.6151
Previous Weekly Low 0.547
Previous Monthly High 0.6504
Previous Monthly Low 0.6192
Daily Fibonacci 38.2% 0.5865
Daily Fibonacci 61.8% 0.5836
Daily Pivot Point S1 0.5788
Daily Pivot Point S2 0.5726
Daily Pivot Point S3 0.5663
Daily Pivot Point R1 0.5912
Daily Pivot Point R2 0.5975
Daily Pivot Point R3 0.6037

 

 

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