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.
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.
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.
