- NZD/USD registered its biggest weekly loss since June last week.
- The pair has hit a fresh two-month low of 0.6453 in Asia.
- New Zealand's Treasury expects a slower GDP growth rate in 2020.
NZD/USD fell to a fresh two-month low of 0.6453 soon before press time. The currency pair attempting a bounce in early Asia, but faced rejection at 0.6469.
Weekly loss
The Kiwi fell by 2.19% last week to register its biggest weekly decline since the second week of June. Back then, the pair declined by 2.6%.
The New Zealand dollar was offered last week on fears that the coronavirus outbreak in China could turn into a pandemic, derailing the global economic recovery.
Growth to slow in 2020
New Zealand's Treasury is expecting a slower gross domestic product growth this year. The GDP expanded 0.7 percent on quarter in the three months to September 2019.
"Data released over December and January showed a more optimistic near-term outlook for the domestic economy, but coronavirus poses a new risk," New Zealand Treasury's monthly report showed on Monday.
The report added that the improvement in the global outlook has been set back by the coronavirus outbreak.
With Treasury presenting a bearish outlook, the NZD may have a tough time cheering the signs of risk reset in the equities.
While the Chinese markets have gapped lower after a week-long holiday, the S&P 500 futures are reporting a 0.68% gains at press time. Further, China has reduced borrowing costs on a 7-day reverse repo from 2.5% to 2.4%. The interest rate on 14-day reverse repo has been reduced to 2.55% from 2.65%.
Technical levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.