NZD/USD recovers from mini-flash crash

NZD/USD dropped 75 pips in just five minutes as dollar spiked against the Japanese yen.
A major portion of the flash crash drop has been erased.
Upbeat China PMI could boost risk sentiment and keep the NZD better bid.

Omkar Godbole FXStreet Contributor

NZD/USD has regained poise and is back above 0.60, having dropped by 75 pips from 0.6025 to 0.5950 in the five in the five minutes to 00:55 UTC.

The mini flash crash in NZD/USD and other pairs like GBP/USD and EUR/USD coincided with the sudden rise in USD/JPY from 108.16 to 108.70 seen while heading into the last Tokyo daily fix of the fiscal year 2019-2020.

The dollar, however, has given up a major portion of the gains in the last few minutes. The NZD/USD pair is currently trading at 0.6010 and could rise further to session highs near 0.6305 as the futures tied to the S&P 500 are signaling risk reset with a 0.45% gain.

More importantly, China's data released at 01:00 GMT showed the manufacturing activity in the world's second-largest economy rebounded sharply to expansion territory in March. The NBS Manufacturing PMI rose to 52.00, bettering the estimate of 45 by a big margin and up from the preceding month's reading of 35.7. The Non-Manufacturing PMI also rose to 52.3 from 29.6, convincingly beating the estimate of 37.8. A reading above 50 indicates expansion.

The upbeat data is likely to ease fears regarding a deeper coronavirus-led economic slowdown in China and across the globe.

Technical levels

NZD/USD

Overview
Today last price	0.601
Today Daily Change	0.0001
Today Daily Change %	0.02
Today daily open	0.6009

Trends
Daily SMA20	0.6042
Daily SMA50	0.6277
Daily SMA100	0.6418
Daily SMA200	0.6436

Levels
Previous Daily High	0.6064
Previous Daily Low	0.5983
Previous Weekly High	0.607
Previous Weekly Low	0.5589
Previous Monthly High	0.6504
Previous Monthly Low	0.6192
Daily Fibonacci 38.2%	0.6014
Daily Fibonacci 61.8%	0.6033
Daily Pivot Point S1	0.5973
Daily Pivot Point S2	0.5938
Daily Pivot Point S3	0.5893
Daily Pivot Point R1	0.6054
Daily Pivot Point R2	0.6099
Daily Pivot Point R3	0.6134

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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