NZD/USD declines below 0.5800 amid the latest risk reset


  • NZD/USD extends pullback from the one-week high.
  • Doubts concerning the US aid package, coronavirus updates seem to renew the risk-off.
  • The US Senate voting on the COVID-19 Bill, Jobless Claims will be important.

NZD/USD drops to 0.5790, currently around 0.5805, following its pullback from the weekly high during the Asian session on Thursday. The kiwi pair failed to cheer the US COVID-19 Bill for longer as the policymakers jostle over the details and the execution. Also, likely weighing on the pair could be the latest coronavirus (COVID-19) updates that signal fears emanating from the UK and Tokyo.

Despite agreeing over the $2.2 trillion packages to combat the deadly virus, the US Senators witness differences as far as the execution of the aid bundle is concerned, as signalled by Fox News. As a result, the policymakers are soon expected to vote on the amendment concerning the unemployment insurance provisions in the coronavirus relief package.

On the other hand, the big jump in the coronavirus numbers from the UK and looming fears of the Tokyo lockdown weigh on the risk-tone. Also adding to the skepticism could be US President Donald Trump’s worries concerning New York City due to the pandemic.

Recently, the Governor of Colorado ordered a state-wide stay-at-home order and magnified the risk-off.

That said, the US 10-year treasury yields step back from earlier recoveries while declining three basis points (bps) to 0.83% whereas the US stock futures also fail to replicate Wall Street’s gains.

Apart from the voting on the US COVID-19 bill, the US Jobless Claims is likely to grab a major attention today as the figure is expected to surge, to 1000K from 281K prior, due to the pandemic. Also important will be the coronavirus updates from the rest of the globe as well as the final reading of the US fourth quarter (Q4) GDP growth, expected to remain unchanged at 2.1%.

Technical analysis

10-day SMA near 0.5840 offers the immediate upside barrier to the pair while sellers will wait for entry below 0.5730.

Additional important levels

Overview
Today last price 0.5801
Today Daily Change -27 pips
Today Daily Change % -0.46%
Today daily open 0.5828
 
Trends
Daily SMA20 0.6104
Daily SMA50 0.633
Daily SMA100 0.6434
Daily SMA200 0.6448
 
Levels
Previous Daily High 0.584
Previous Daily Low 0.5688
Previous Weekly High 0.6151
Previous Weekly Low 0.547
Previous Monthly High 0.6504
Previous Monthly Low 0.6192
Daily Fibonacci 38.2% 0.5782
Daily Fibonacci 61.8% 0.5746
Daily Pivot Point S1 0.5731
Daily Pivot Point S2 0.5634
Daily Pivot Point S3 0.5579
Daily Pivot Point R1 0.5883
Daily Pivot Point R2 0.5937
Daily Pivot Point R3 0.6034

 

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.

AUD/USD News

USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.

USD/JPY News

Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI fragility amid OPEC+ delays

The price of oil has been under some pressure in recent trade considering the delays to the OPEC meeting which had been scheduled for Monday but put back until Thursday. Markets are otherwise enjoying some recovery amid signs of a slow down in COVID-19 contagion. 

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures