NZD/USD: Pressured above 0.6000 following PBOC rate decision, risk-off

  • NZD/USD bounces off intraday low after PBOC rate cut.
  • The pair earlier failed to cheer NZ CPI data amid fresh risk aversion.
  • US coronavirus numbers, challenges to the economic restart question the trade sentiment.

Despite bouncing off intraday low of 0.6008, NZD/USD remains under pressure, down 0.18% on a day around 0.6022, during the Asian session on Monday.

The pair recently took clues from the People’s Bank of China’s (PBOC) rate cuts. The PBOC recently cut one and five-year loan prime rates to 3.85% and 4.65% versus respective prior of 4.05% and 4.75%.

Earlier during the day, New Zealand’s first quarter (Q1) Consumer Price Index (CPI) rose to 2.5% on YoY and 0.8% QoQ versus the respective downbeat forecasts of 1.8% and 0.3% respectively.

Even so, surging coronavirus (COVID-19) numbers from the US, as per Reuters, as well as a lack of agreement to follow the Trump administration’s phased plan for economic restoration, seems to keep the risk-tone heavy.

While portraying the same, the US 10-year treasury yield drop to 0.64% whereas Japan’s NIKKEI declines more than 1.0% to 19,688 by the press time.

Given the lack of major data/events on the economic calendar, except for Chicago Fed National Activity Index, traders will keep eyes on the virus updates for fresh impulse.

Technical analysis

Buyers and sellers jostle between 21-day and 50-day SMA, occupying the area above 0.5965 and below 0.6125 levels respectively.

Additional important levels

Today last price 0.602
Today Daily Change -12 pips
Today Daily Change % -0.20%
Today daily open 0.6032
Daily SMA20 0.5965
Daily SMA50 0.613
Daily SMA100 0.636
Daily SMA200 0.6388
Previous Daily High 0.6051
Previous Daily Low 0.5956
Previous Weekly High 0.6131
Previous Weekly Low 0.5922
Previous Monthly High 0.645
Previous Monthly Low 0.547
Daily Fibonacci 38.2% 0.6015
Daily Fibonacci 61.8% 0.5992
Daily Pivot Point S1 0.5975
Daily Pivot Point S2 0.5918
Daily Pivot Point S3 0.588
Daily Pivot Point R1 0.6071
Daily Pivot Point R2 0.6109
Daily Pivot Point R3 0.6166



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