- NZD/USD holds onto recovery gains after the New Zealand government releases further measures to counter coronavirus.
- The 12.1 billion New Zealand dollar package follows RBNZ’s rate cut the previous day.
- The Finance minister cites fears of a recession, eyes on the US data, COVID-19 headlines for fresh impulse.
NZD/USD rises to 0.6070, up 0.40%, following the high of 0.6096 as the New Zealand government announced details of its stimulus during the Asian session on Tuesday. The government allocated nearly 4.0% of the GDP to counter the negative implications of the coronavirus (COVID-19) after the RBNZ’s rate cut the previous day.
In addition to offering the details of the plan, New Zealand’s Finance Minister also cites fears of a recession, job losses and an increase in debts.
Even so, the market’s risk-tone remains on the recovery mode as the US 10-year treasury yields remain on the front foot around 0.785% while S&P 500 Futures register close to 4.0% gains after declining heavily on Monday.
Earlier during the day, New Zealand Westpac Consumer Survey data for the first quarter (Q1) came in below 109.9 to 104.20. Further, it should also be noted that the RBNZ surprised global markets with a 0.75% rate cut the previous day.
Looking forward, the US Retail Sales for November and the virus updates will be the key to forecast near-term market direction.
Any update beyond October 2019 low near 0.6200 is less likely to lure the buyers. On the contrary, sellers can take entry if the prices slip below 0.6000 mark.
Additional important levels
|Today last price||0.6053|
|Today Daily Change||6 pips|
|Today Daily Change %||0.10%|
|Today daily open||0.6047|
|Previous Daily High||0.6151|
|Previous Daily Low||0.5985|
|Previous Weekly High||0.645|
|Previous Weekly Low||0.6005|
|Previous Monthly High||0.6504|
|Previous Monthly Low||0.6192|
|Daily Fibonacci 38.2%||0.6088|
|Daily Fibonacci 61.8%||0.6048|
|Daily Pivot Point S1||0.5971|
|Daily Pivot Point S2||0.5895|
|Daily Pivot Point S3||0.5804|
|Daily Pivot Point R1||0.6137|
|Daily Pivot Point R2||0.6227|
|Daily Pivot Point R3||0.6303|
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