NZD/USD consolidates gains around 0.5950, coronavirus fears prevail


  • NZD/USD fails to hold onto a four-day winning streak.
  • New Zealand’s second-tier data came in weaker.
  • The US COVID-19 Task Force Briefing suggests Trump-Xi talk.
  • US House voting on the coronavirus bill, virus updates will provide fresh impulse.

NZD/USD pulls back from an eight-day top to 0.5945 amid the early Asian session on Friday.  The kiwi pair recently witnessed declines following New Zealand’s ANZ-Roy Morgan Consumer Confidence and Total Filled Jobs data while the US dollar seems to have benefited from the calls of the US-China talk and risk reset.

New Zealand’s March month ANZ-Roy Morgan Consumer Confidence slipped below 122.1 prior to 106.3 whereas the Total Filled Jobs for February rose to 2.21M from 2.2 earlier.

In his Coronavirus Task Force Briefings, US President Donald Trump signaled that he will talk to China’s President Xi Jinping and discuss the virus issue on Thursday. The US leader also pushed for a US coronavirus bill that is in the final stages of being the law.

The US dollar dropped earlier amid the coronavirus (COVID-19) outbreak in the world’s largest economy. The cases grew beyond 81,000, as per the New York Times, while surpassing China. Furthering the greenback weakness was a spike in the Jobless Claims that rose beyond 3.0 million from a measure upwardly revised 282K.

On the other hand, the risk-tone remained positive with Wall Street marking the third day in green while the US 10-year treasury yields also recovering back to 0.85%. However, the stock futures are showing a sign of risk reset off-late.

Looking forward, market players are likely to concentrate more on the US House voting on the bill as well as virus headlines while comments from the Trump-Xi call and the US Michigan Consumer Sentiment might also offer intermediate moves.

Technical analysis

A sustained break of a 10-day SMA level of 0.5845 enables the buyers to target 21-day SMA near 0.6060.

Additional important levels

Overview
Today last price 0.5947
Today Daily Change 97 pips
Today Daily Change % 1.66%
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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