NZD/USD remains offered below 0.6000 amid risk-off

NZD/USD extends the previous day’s losses.
Coronavirus fatalities, downbeat US data and market performance heavy the risk-tone.
Aussie employment numbers, virus updates will be the key to watch.

Anil Panchal FXStreet

With no respite from the recent risk-off, NZD/USD stays on the back foot around 0.5985 during the early Asian session on Thursday. The pair previously took a U-turn from the monthly top amid broad US dollar strength, mainly due to its risk-safety allure.

Although US President Donald Trump continues his efforts to convince traders that the US is gradually overcoming the coronavirus (COVID-19) crisis and will restore working soon, pandemic data suggest otherwise.

The latest data from Reuters mentioned that the world’s largest economy registered the biggest single-day increase in new deaths due to the virus, to 30,817 with an increase of 2,371, on Wednesday.

Further to propel the risk-off could be downbeat US data and the pessimistic economic forecasts from the International Monetary Fund (IMF), signaling a -3.0% global GDP for 2020.

As a result, the US bonds rallied and Wall Street marked losses on Wednesday whereas futures linked to S&P 500 and DJI30 flash the red by the press time.

While virus updates keep the driver’s seat, jobs report from the largest customer Australia will be followed for intermediate direction. Even if the forecasts suggest downbeat outcomes due to the pandemic, any upside surprises will have a strong marker reaction than the otherwise case. Following that, New Zealand’s ANZ monthly inflation gauge for March can also be observed ahead of the busy US docket.

Technical analysis

Unless clearing 50-day SMA, currently at 0.6138, sellers remain directed towards 0.5940 comprising 21-day SMA.

Additional important levels

Overview
Today last price	0.5988
Today Daily Change	-118 pips
Today Daily Change %	-1.93%
Today daily open	0.6106

Trends
Daily SMA20	0.5923
Daily SMA50	0.6157
Daily SMA100	0.6373
Daily SMA200	0.6398

Levels
Previous Daily High	0.6131
Previous Daily Low	0.6065
Previous Weekly High	0.6104
Previous Weekly Low	0.585
Previous Monthly High	0.645
Previous Monthly Low	0.547
Daily Fibonacci 38.2%	0.6106
Daily Fibonacci 61.8%	0.609
Daily Pivot Point S1	0.607
Daily Pivot Point S2	0.6035
Daily Pivot Point S3	0.6004
Daily Pivot Point R1	0.6136
Daily Pivot Point R2	0.6167
Daily Pivot Point R3	0.6202

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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