NZD/USD remains stuck in narrow range below 0.6400 ahead of key events


  • Coronavirus outbreak is expected to weigh heavily on Chinese economy.
  • US Dollar Index consolidates gains below 99 handle.
  • Coming up: FOMC Chairman Powell's testimony and RBNZ rate decision.

The NZD/USD pair edged lower during the Asian trading hours and touched its worst level since mid-November at 0.6378 before erasing its losses ahead of key macroeconomic events. As of writing, the pair was trading at 0.6394, adding 0.17% on a daily basis.

China-proxy antipodeans continue to have a hard time finding demand amid concerns over the potential negative impact of the coronavirus outbreak on the Chinese economy.

Earlier in the day, Zeng Gang, Vice-Chair of the National Institute for Finance and Development, a Chinese government think tank, said that the coronavirus outbreak could trim the country’s full-year economic growth rate by as much as 1% in 2020. On a similar note, Goldman Sachs slashed its 2020 GDP forecast for China to 5.2% from 5.8%. 

Eyes on Powell's testimony and RBNZ

On the other hand, ahead of the FOMC Chairman Powell's testimony before the Committee on Financial Services of the Congress, the US Dollar Index is posting modest losses to allow the pair to stay in the positive territory.

In the early trading hours of the Asian session on Wednesday, the Reserve Bank of New Zealand (RBNZ) will announce its interest rate decision and publish the monetary policy statement. 

Previewing the event, “we expect the RBNZ to retain an easing bias at its Monetary Policy Statement on Wednesday, although it will probably be described as a conditional one, dependent on the impact of the coronavirus pandemic,” said Westpac analysts.

Technical levels to watch for 

NZD/USD

Overview
Today last price 0.6392
Today Daily Change 0.0006
Today Daily Change % 0.09
Today daily open 0.6386
 
Trends
Daily SMA20 0.6536
Daily SMA50 0.6588
Daily SMA100 0.6474
Daily SMA200 0.6503
 
Levels
Previous Daily High 0.6418
Previous Daily Low 0.6381
Previous Weekly High 0.6504
Previous Weekly Low 0.6397
Previous Monthly High 0.6741
Previous Monthly Low 0.6453
Daily Fibonacci 38.2% 0.6395
Daily Fibonacci 61.8% 0.6404
Daily Pivot Point S1 0.6372
Daily Pivot Point S2 0.6358
Daily Pivot Point S3 0.6335
Daily Pivot Point R1 0.6409
Daily Pivot Point R2 0.6432
Daily Pivot Point R3 0.6446

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends sideways grind around 1.1650 after mixed US data

EUR/USD is struggling to find direction on Thursday and continues to fluctuate in a relatively tight range around mid-1.1600s. Mixed data releases from the US don't seem to be having a noticeable impact on the greenback's performance against its major rivals.

EUR/USD News

GBP/USD struggles to pull away from 1.3800

GBP/USD retraced a portion of Wednesday's during the European trading hours pressured by the renewed USD strength and the souring market mood. With the latest US data failing to trigger a reaction, the pair stays in a consolidation phase near 1.3800.

GBP/USD News

XAU/USD struggles for direction, flat-lined above $1,780 level

The risk-off impulse in the markets extended some support to the safe-haven gold. Elevated US bond yields, a modest USD strength capped the upside for the metal. Bulls need to wait for a move beyond the $1,800 mark before placing fresh bets.

Gold News

Buying Solana now to gain 700% profits by 2022

Solana price has been on a massive run-up in 2021 from $1 to $216 in roughly eight months. This stellar climb is likely to continue into 2022 as significant bullish signs emerge. Moreover, the start of a new bull run will serve as a tailwind for SOL.

Read more

Netflix: Three reasons to sell NFLX after earnings

NFLX has been strong into earnings as investors digested the massive success of Squid Game and hoped this would feed through into very strong subscriber numbers. Netflix was out straight after the bell with earnings.

Read more

Forex MAJORS

Cryptocurrencies

Signatures