NZD/USD erases early losses, stays below 0.6450

NZ PM Arden expects coronaivurs outbreak to hurt economy in H1.
China voices commitment to stimulate economy via tax cuts.
US financial markets are closed on Monday in observance of Presidents Day.

Eren Sengezer FXStreet

The NZD/USD pair edged lower at the start of the week but didn't have a hard time erasing its losses. As of writing, the pair was trading at 0.6440, where it was virtually unchanged on a daily basis.

Eyes on coronavirus headlines

Commenting on New Zealand Treasury's economic forecasts, Prime Minister Jacinda Arden noted that the coronavirus outbreak was seen on the economic growth during the first half of the year. In the meantime, the ANZ Bank's Monthly Inflation Gauge stayed unchanged at 3.2% on a yearly basis.

Although the NZD struggled to find demand during the Asian session, China's commitment to helping the economy allowed antipodeans to show resilience. China's Finance Minister Liu Kun said that they will be introducing "targeted and phased measures" to cut taxes with an aim to stimulate the economy in the wake of the coronavirus outbreak.

The market action is expected to be subdued in the second half of the day on Monday as US financial markets will remain closed in observance of Presidents Day.

The only macroeconomic data featured from New Zealand will be the REINZ House Price Index.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.644
Today Daily Change	0.0007
Today Daily Change %	0.11
Today daily open	0.6433

Trends
Daily SMA20	0.6499
Daily SMA50	0.6579
Daily SMA100	0.648
Daily SMA200	0.65

Levels
Previous Daily High	0.6445
Previous Daily Low	0.6423
Previous Weekly High	0.6488
Previous Weekly Low	0.6377
Previous Monthly High	0.6741
Previous Monthly Low	0.6453
Daily Fibonacci 38.2%	0.6431
Daily Fibonacci 61.8%	0.6437
Daily Pivot Point S1	0.6422
Daily Pivot Point S2	0.6412
Daily Pivot Point S3	0.64
Daily Pivot Point R1	0.6444
Daily Pivot Point R2	0.6456
Daily Pivot Point R3	0.6466

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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