NZD/USD: Off lows despite continued risk aversion in stocks


  • Risk-off fails to weaken the bid tone around NZD/USD. 
  • New Zealand's relative success in controlling coronavirus supports NZD.

NZD/USD has erased losses early losses amid a persistent risk-off tone in the global equity markets. 

At press time, the currency pair is trading largely unchanged on the day near 0.6703, having hit a low of 0.6693 early today. 

The recovery may look confounding to many, given the futures tied to the S&P 500 are currently down 0.61%. In other words, US stocks are likely to suffer losses for the third straight day on Wednesday, courtesy of renewed coronavirus concerns. 

Global stocks have come under pressure this week, as the second wave of the virus has recently gathered pace across Europe and in the US and is threatening to derail the global economic recovery.

Commodity dollars typically face selling pressure during times of risk aversion in global stocks. However, so far this week, the NZD has shown resilience. 

That's not particularly surprising, as New Zealand is one of the few countries with less than 100 active cases. The country's relative success in handing the coronavirus crisis weakens the case for immediate action by the Reserve Bank of New Zealand could be keeping the NZD bears at bay. Should the situation in the US and across Europe worsen, the NZD may witness haven flows. 

Technical levels

NZD/USD

Overview
Today last price 0.6703
Today Daily Change -0.0008
Today Daily Change % -0.12
Today daily open 0.6709
 
Trends
Daily SMA20 0.6633
Daily SMA50 0.6643
Daily SMA100 0.6596
Daily SMA200 0.639
 
Levels
Previous Daily High 0.6726
Previous Daily Low 0.6672
Previous Weekly High 0.6705
Previous Weekly Low 0.6553
Previous Monthly High 0.6799
Previous Monthly Low 0.6511
Daily Fibonacci 38.2% 0.6705
Daily Fibonacci 61.8% 0.6693
Daily Pivot Point S1 0.6679
Daily Pivot Point S2 0.6648
Daily Pivot Point S3 0.6625
Daily Pivot Point R1 0.6733
Daily Pivot Point R2 0.6756
Daily Pivot Point R3 0.6787

 


 

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