NZD/USD inches closer to 0.6100 after fresh stimulus from New Zealand

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.

Anil Panchal FXStreet

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.

Read: New Zealand announces nz$12.1 bln economic package in response to COVID-19

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.

Technical Analysis

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

Overview
Today last price	0.6053
Today Daily Change	6 pips
Today Daily Change %	0.10%
Today daily open	0.6047

Trends
Daily SMA20	0.6277
Daily SMA50	0.6432
Daily SMA100	0.6471
Daily SMA200	0.6471

Levels
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

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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