NZD/USD drops back to 0.5850 despite upbeat RBNZ comments
- NZD/USD ignores upbeat RBNZ official’s remarks.
- Dollar strength and oil-price weakness weigh on the Kiwi.
- Coronavirus updated led risk sentiment to dominate.
Having faced rejection around 0.5880 once again, NZD/USD is losing nearly 30-pips and tests the 0.5850 support area, as the US dollar continues to rule across the board.
At the time of writing, the Kiwi trades 0.22% lower at 0.5856 while the US dollar index prints a fresh eight-day high of 100.85, up 0.27% on a daily basis.
The greenback continues to draw haven bids, as markets prefer tp hold the US currency in times of the coronavirus pandemic induced global economic uncertainty and disruptions. The virus spread is unabated, as most major governments have announced lockdowns to contain the infections.
Adding to the downward momentum, the latest slump in oil prices, amid growing uncertainty over the global supply and OPEC+ meeting pushed back, weighs negatively on resource-linked NZD.
Meanwhile, the major ignored the upbeat comments from the Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr and Chief Economist Yuong Ha, as the sentiment continues to remain driven by the dollar dynamics, in the face of the virus crisis.
NZD/USD technical levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
