• US Dollar Index returns to 101.50 area after rebounding to 101.90.
  • Wall Street's main indexes extend recovery on Wednesday.
  • US Senate is expected to pass the coronavirus relief bill.

Boosted by the upbeat market mood, the NZD/USD pair started the day on a strong footing on Wednesday and touched its highest level in five days at 0.5911. However, the pair struggled to preserve its bullish momentum in the second half of the day and erased its daily gains. As of writing, the pair was down 0.1% at 0.5820.

DXY recovery remains short-lived

After testing the 101 handle earlier in the day, the US Dollar Index (DXY) staged a decisive recovery during the American trading hours and briefly turned positive on the day near 101.90.

The market mood soured while investors were waiting for the finalization and the details of the $2 trillion fiscal stimulus package and Wall Street's main indexes edged lower after the opening bell to allow the USD to capitalize on risk-off flows.

However, with lawmakers reassuring that the coronavirus relief bill will provide the support the economy needs by stabilizing key national industries and helping individuals during layoffs, the risk sentiment recovered in the last hour. As of writing, the Dow Jones Industrial Average and the S&P 500 was up 3.7% and 2.2%, respectively. Moreover, the US Dollar Index returned to 101.50 to help the pair limit its losses.

There won't be any macroeconomic data releases from New Zealand on Thursday and the USD's market valuation is likely to continue to drive the pair's movements.

Technical levels to watch for


Today last price 0.5821
Today Daily Change -0.0007
Today Daily Change % -0.12
Today daily open 0.5828
Daily SMA20 0.6104
Daily SMA50 0.633
Daily SMA100 0.6434
Daily SMA200 0.6448
Previous Daily High 0.584
Previous Daily Low 0.5688
Previous Weekly High 0.6151
Previous Weekly Low 0.547
Previous Monthly High 0.6504
Previous Monthly Low 0.6192
Daily Fibonacci 38.2% 0.5782
Daily Fibonacci 61.8% 0.5746
Daily Pivot Point S1 0.5731
Daily Pivot Point S2 0.5634
Daily Pivot Point S3 0.5579
Daily Pivot Point R1 0.5883
Daily Pivot Point R2 0.5937
Daily Pivot Point R3 0.6034



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.


USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.


Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI fragility amid OPEC+ delays

The price of oil has been under some pressure in recent trade considering the delays to the OPEC meeting which had been scheduled for Monday but put back until Thursday. Markets are otherwise enjoying some recovery amid signs of a slow down in COVID-19 contagion. 

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more