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.

AUD/USD looks weaker, focus is back to 0.7100

AUD/USD reverses Tuesday’s gains and retreats markedly toward four-day troughs in the low 0.7100s ahead of the opening bell in Asia. The firmer tone in the Greenback weighs on the risk complex amid unabated tensions on the US-Iran front, prompting the Aussie to shed part of recent gains and refocus on the downside. Moving forward, Australian trade balance results should entertain investors early on Thursday.

Japanese Yen bounces up from lows after Japan PM Takaichi’s intervention warnings

The Japanese Yen bounced up from five-week lows against the US Dollar, turning positive on the daily chart, as Japan’s Prime Minister Sanae Takaichi warned that Tokyo is ready to take action against Yen weakness. The USD/JPY pair has pulled back from the 160.00 level, considered a line in the sand for Japanese authorities, to hit session lows at 159.55.

Gold remains under bearish pressure, looks at $4,400

Gold keeps the offered stance well in place, retreating toward the $4,430 region per troy ounce, or four-day lows, on Wednesday. The yellow metal’s retracement comes in response to escalating tensions in the Middle East, which in turn continue to drive oil prices higher while reinforcing the idea of a tighter-for-longer Fed.

XRP eyes rebound despite muted ETF demand

Ripple (XRP) rebounds above $1.23 from support at $1.20 at the time of writing on Wednesday, as the broader cryptocurrency market pares losses triggered by escalating tensions in the Middle East. Appetite for risk assets remains generally low as the United States (US) and Iran exchange fire amid a fragile ceasefire and peace negotiations.

The upside-down math of debt

In 2010, Professors Carmen Reinhart and Kenneth Rogoff published a paper, Growth in a Time of Debt, which instantly went viral. The main thesis of the paper was that once a government's debt-to-GDP ratio crosses above 90%, a financial crisis and default are around the corner.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.