NZD/USD dips below 200-hour SMA on risk aversion


  • NZD/USD drops 0.23% in Asia after failing to break above 0.66 on Thursday. 
  • Risk-off action in the equity market bodes well for the safe-haven US dollar. 
  • Fed's balance sheet size drops below $7 trillion, could add to bearish tone around equities. 

The NZD/USD pair is extending overnight losses with the US dollar continuing to draw haven bids amid losses in the equity markets. 

Currently, the pair is trading near the 200-hour simple moving average at 0.6517, having printed a session low of 0.6546 soon before press time. 

Risk-off

The US stocks dropped on Thursday as the continued spread of coronavirus threatened prospects of V-shaped economic recovery. 

Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases said that states of Texas, Florida, and California, where cases are rising at a faster rate, should opt to pause reopening measures and rather go for a complete shutdown. 

In addition, oil prices fell sharply, pushing the energy stocks lower and adding to bearish pressures around the broader equity markets. 

At press time, the futures tied to the S&P 500 are flatlined, however, stocks in Japan, Australia, and South Korea are flashing red and keeping risk assets under pressure. 

The risk aversion may worsen on Friday, fueling deeper losses in NZD/USD, as the Federal Reserve’s balance sheet size is decreasing with the fall in demand for emergency liquidity measures. 

Technical levels

NZD/USD

Overview
Today last price 0.6553
Today Daily Change -0.0017
Today Daily Change % -0.26
Today daily open 0.657
 
Trends
Daily SMA20 0.6477
Daily SMA50 0.631
Daily SMA100 0.6187
Daily SMA200 0.6335
 
Levels
Previous Daily High 0.6601
Previous Daily Low 0.6551
Previous Weekly High 0.6539
Previous Weekly Low 0.6385
Previous Monthly High 0.6585
Previous Monthly Low 0.6186
Daily Fibonacci 38.2% 0.657
Daily Fibonacci 61.8% 0.6582
Daily Pivot Point S1 0.6547
Daily Pivot Point S2 0.6524
Daily Pivot Point S3 0.6497
Daily Pivot Point R1 0.6597
Daily Pivot Point R2 0.6624
Daily Pivot Point R3 0.6647

 

 

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