NZD/USD continues to erase RBNZ-inspired gains, trades around 0.6450


  • Coronavirus fears weigh on China-proxy NZD on Thursday.
  • US Dollar Index stays calm near 99 handle.
  • Coming up: Weekly Jobless Claims and CPI data from US. 

The NZD/USD pair registered decisive gains on the back of Reserve Bank of New Zealand's hawkish policy outlook and closed the day 40 pips higher. With reemerging coronavirus fears weighing on the demand for China-proxy antipodeans, the pair started to erase its gains and was last seen trading at 0.6452, down 0.15% on the day.

RBNZ adopts surprisingly hawkish stance

RBNZ on Wednesday explained that it was unlikely to opt out for a rate cut in 2020. Commenting on the policy statement, "we have been holding onto the minority view that the RBNZ will maintain its OCR this year. Today’s meeting certainly reinforces our view that the RBNZ is done cutting rates for now, following the cumulative 75bps rate cuts last year,” said Lee Sue Ann, Economist at UOB Group.

However, RBNZ Governor Orr noted that if the coronavirus outbreak were to last for a sustained period, it would have an impact on the monetary policy.

In the meantime, China reported a huge jump in confirmed coronavirus infections on Thursday. Although the increase was reportedly caused by a change in the counting method, investors stay away from risk-sensitive assets while assessing the potential impact of the virus on the global economy.

In the second half of the day, the Consumer Price Index data, which is expected to tick up to 2.4% on a yearly basis, from the US will be looked upon for fresh impetus. Ahead of this data, the US Dollar Index is moving sideways near the 99 mark, allowing the risk perception to drive the pair's action.

Technical levels to watch for

NZD/USD

Overview
Today last price 0.6453
Today Daily Change -0.0011
Today Daily Change % -0.17
Today daily open 0.6464
 
Trends
Daily SMA20 0.6518
Daily SMA50 0.6584
Daily SMA100 0.6477
Daily SMA200 0.6501
 
Levels
Previous Daily High 0.6488
Previous Daily Low 0.6398
Previous Weekly High 0.6504
Previous Weekly Low 0.6397
Previous Monthly High 0.6741
Previous Monthly Low 0.6453
Daily Fibonacci 38.2% 0.6454
Daily Fibonacci 61.8% 0.6432
Daily Pivot Point S1 0.6412
Daily Pivot Point S2 0.636
Daily Pivot Point S3 0.6322
Daily Pivot Point R1 0.6502
Daily Pivot Point R2 0.654
Daily Pivot Point R3 0.6592

 

 

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.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD failed to recover above 1.2100

The shared currency remains under selling pressure against its American rival, trading in the 1.2080 area. Market players waiting for more hints in the form of April Retail Sales.

EUR/USD News

GBP/USD under pressure below 1.4050 amid renewed USD demand

GBP/USD trades pressured below 1.4050, as the US dollar remains broadly bid amid risk-off sentiment. Rising inflationary pressures and Brexit jitters over NI keep investors on the edge. Bailey's speech, US data in focus.

GBP/USD News

XAU/USD respects the 10-day EMA

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. Gold Weekly Forecast: XAU/USD could target 200-day SMA

Gold News

Yearn Finance Price Forecast: YFI eyes consolidation after quick surge

Yearn Finance price tagged the channel’s upper trend line yesterday, falling just short of $100,000 and 261.8% Fibonacci extension target at $102,900. The sharp reversal from the trend line marks a significant turning point for YFI that will shift price action to consolidation from the uptrend beginning at the April 25 low. 

Read more

US markets lead the recovery as jobless claims decline

Ongoing inflation fears remain, yet improved jobless claims help lift spirits in the US. Meanwhile, UK reopening stocks have been dealt a blow after SAGE claimed that a rise in the Indian Covid strain could slow the pace of lockdown easing. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures