- NZD/USD gradually weakens from Monday’s top, stay far from the volatile day’s low.
- Global government’s actions to counter coronavirus grab the spotlight.
- New Zealand Manufacturing Sales, speech from RBNZ’s Orr and China’s inflation numbers will decorate the economic calendar.
NZD/USD registers a mild weakness from the previous day’s high to 0.6335 as the Asian session begins for Tuesday. The coronavirus-led week-start volatility has likely taken a halt, for now. However, global policymakers’ efforts to counter negative implications and spread seem to keep the risk-tone heavy. Traders may await key signals from the economic calendar for fresh impulse.
In addition to the Italian PM Conte’s signal to limit transmission in the whole country, due to coronavirus (COVID-19), reactions from Canada, Spain, the US and the UK also show the global policymakers’ rush to tame the pandemic.
In doing so, they unintentionally harm the global supply chain while also spreading fears that the virus will weigh on the economy.
As a result, the market’s risk-tone remains under pressure despite recovering a bit from Monday’s carnage. Even so, the US 10-year treasury yields take rounds to 0.5% following Wall Street benchmarks’ plunge into the sea of red.
Traders will now pay attention to the economic calendar that carries the fourth quarter (Q4) New Zealand Manufacturing Sales, expected 4.3% versus -0.3% prior, followed by a speech from the RBNZ’s Orr as well as China’s CPI and PPI data for February.
RBNZ’s Orr is less likely to provide any links relating to current economic conditions or the Reserve Bank’s outlook for the Official Cash Rate (OCR) while discussing principles governing the use of unconventional monetary policy tools. Further, China’s CPI may soften to 5.2% YoY from 5.4% prior while PPI could shrink 0.3% from 0.1% prior.
While the economic calendar may flash mixed reading and can offer intermediate moves, COVID-19 updates will hold the driver’s seat.
Unless providing a sustained break beyond February 11 low surrounding 0.6380, NZD/USD prices are less likely to avoid visiting the last week's low near 0.6200.
Additional important levels
|Today last price||0.6333|
|Today Daily Change||-0.0026|
|Today Daily Change %||-0.41|
|Today daily open||0.6359|
|Previous Daily High||0.6373|
|Previous Daily Low||0.6292|
|Previous Weekly High||0.6373|
|Previous Weekly Low||0.6195|
|Previous Monthly High||0.6504|
|Previous Monthly Low||0.6192|
|Daily Fibonacci 38.2%||0.6342|
|Daily Fibonacci 61.8%||0.6323|
|Daily Pivot Point S1||0.631|
|Daily Pivot Point S2||0.626|
|Daily Pivot Point S3||0.6229|
|Daily Pivot Point R1||0.6391|
|Daily Pivot Point R2||0.6422|
|Daily Pivot Point R3||0.6472|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.