NZD/USD remains bid above 100-day MA as RBNZ's Orr downplays coronavirus fears


  • NZD/USD is holding onto gains above the 100-day average at 0.6459. 
  • RBNZ's Orr said the negative impact of the coronavirus outbreak could be short-lived. 
  • The bank kept rates unchanged at 1% earlier today. 

NZD/USD continues to trade at session highs above the 100-day moving average (MA) at 0.6459 with Reserve Bank of New Zealand's governor Orr downplaying coronavirus scare during the press conference. 

Orr called coronavirus outbreak a downside risk to New Zealand's economy but said the negative impact will be short-lived and the economy will rebound in the second half of 2020 on the back of fiscal and monetary policy stimulus. 

The central bank kept rates unchanged at 1%, as expected, at 01:00 GMT and surprised markets by rolling out forecasts that showed the borrowing costs will remain unchanged throughout 2020. 

The markets were expecting the central bank to hint at deeper rate cuts during the year ahead. 

As a result, the NZD/USD pair jumped from 0.6408 and 0.6462 in the 15 minutes to 01:15 GMT and is now trading at 0.6465. 

The pair could continue to gain altitude on RBNZ's lack of rate cut hint and signs of risk reset in the equity markets. The US stocks rallied on Tuesday with the S&P and Nasdaq printing highest daily closing prices. At press time, major Asian indices like Nikkei and Hang Seng are flashing moderate gains. 

Technical levels

NZD/USD

Overview
Today last price 0.6465
Today Daily Change 0.0065
Today Daily Change % 0.98
Today daily open 0.64
 
Trends
Daily SMA20 0.6526
Daily SMA50 0.6586
Daily SMA100 0.6475
Daily SMA200 0.6502
 
Levels
Previous Daily High 0.6422
Previous Daily Low 0.6377
Previous Weekly High 0.6504
Previous Weekly Low 0.6397
Previous Monthly High 0.6741
Previous Monthly Low 0.6453
Daily Fibonacci 38.2% 0.6405
Daily Fibonacci 61.8% 0.6394
Daily Pivot Point S1 0.6377
Daily Pivot Point S2 0.6355
Daily Pivot Point S3 0.6332
Daily Pivot Point R1 0.6422
Daily Pivot Point R2 0.6445
Daily Pivot Point R3 0.6467

 

 

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