NZD/USD drops below 50-bar SMA after fresh coronovirus news


  • NZD/USD shed 30+ pips as the numbers of coronavirus cases from China rallied.
  • The revision in the diagnostic standard for coronavirus cases seems to blame for the surge in counts.
  • A six-week-old falling trend line adds to the upside barrier.

NZD/USD declined more than 30 pips to the intra-day low of 0.6428, currently around 0.6445, as soon as the latest coronavirus numbers arrived from China during Thursday’s Asian session.

As per the update, Hubei province has reported 14,840 new coronavirus cases while the death toll rises 242 to 1,310 by the end of February 2020. The surge in numbers could be attributed to the revised diagnostic standard.

Following the release, the market’s trade sentiment turned weaker with the S&P 500 Futures down 0.33% to the sub-3,370 mark.

Earlier on Thursday, the RBNZ Assistant Governor/GM Economics, Financial Markets and Banking, Christian Hawkesby favored interest rate held at a record low for a long time. Prior to that, the RBNZ Governor Adrian Orr cited downside risk to the economic outlook.

Traders will now look more seriously towards the coronavirus headlines considering the latest turn in risk-tone. However, that doesn’t dim the importance of January month inflation numbers from the US for which Westpac said, “The US data focus is Jan CPI, where expectations are 0.2%mth, 2.4%yr overall, 0.2%mth, 2.2%yr ex-food and energy. Any major surprise could impact markets, but there is limited Fed focus on inflation at the moment relative to activity and sentiment and this is not the Fed’s preferred inflation measure.”

Technical Analysis

Unless breaking a three-week-old resistance trendline currently around 0.6515, NZD/USD prices are less likely to lure the bulls, which in turn highlight the importance of 0.6420 and 0.6370 as the immediate supports.

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Additional important levels

Overview
Today last price 0.6446
Today Daily Change -0.0018
Today Daily Change % -0.28%
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

 

 

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