• NZD/USD faltering with the risk of a set back to pre-RBNZ territories. 
  • A surge of 45% in coronavirus cases amid new image scans, has seen the market revert to a risk-off tone.

The NZD/USD is faltering on the bid into the last session for the week in Asia following US data that continues to keep the DXY bid in the 99 handle. The coronavirus is also playing into the hands of the NZD bears although the commodity complex as a whole is robust on a technical basis on the charts – copper and CRB index meeting resistance structure. 

At the time of writing, NZD/USD is trading at 0.6440, subdued between a range of 0.6467 highs and 0.6428 owing to the uncertainties surrounding the coronavirus and a firm US Consumer Price Index outcome which puts the post-Reserve Bank of New Zealand's MPS gains in jeopardy on a sustained break below the 0.6440s. 

US CPI MoM misses the mark but is enough to support the US dollar

First and foremost, Headline CPI was rising only 0.1% MoM, below consensus expectations at 0.2%. However, as analysts at TD Securities explained, strong OER and rents kept the 12m change in core prices at 2.3%, which remains consistent with the pace for the Fed's preferred core PCE measure remaining below 2%.

"All in all, the CPI report details were stronger than expected. While core inflation remained steady at 2.3% y/y, shelter prices are worth watching closely in the next few months. Meanwhile, core PCE inflation continues to run below core CPI inflation. As of December, the core PCE index was up 1.6% y/y — versus 2.3% for the core CPI." 

The data shows the US economy is improving and supports the argument for the Fed to hold interest rates at current levels. Subsequently, the US 10-year yields were quick to move back of the worst levels of the day, ending on Wall Street around 1.6110% having travelled between 1.5620% and 1.6340% which has been supportive for the greenback through 99 the figure in the DXY on Thursday's US session.

Coronavirus in the driver's seat

As for the coronavirus, the news overnight that there were nearly 50k new coronavirus cases in Hubei province, a surge of 45% amid new image scans, has seen the market revert to a risk-off tone which is weighing on NZD.

The latest figures in the Hubei province reported 242 new deaths and 14,840 new cases of the flu-like virus. That brings the worldwide death toll to at least 1,357 and the number of confirmed cases to more than 60,000. The lift in cases was driven by a change in the way the disease is being diagnosed meaning a lift in both cases and deaths attributed to the disease. This created uncertainty and stemmed previous optimism that the disease may be peaking.

Casting minds closely back to the Reserve Bank of New Zealand:

  • RBNZ says the overall impact of coronavirus on New Zealand will be of short duration. 
  • RBNZ says risks that impact will be larger and more persistent.
  • Members agreed that monetary policy had time to adjust if needed as more information on coronavirus became available.

NZD/USD levels


Today last price 0.6442
Today Daily Change -0.0022
Today Daily Change % -0.34
Today daily open 0.6464
Daily SMA20 0.6518
Daily SMA50 0.6584
Daily SMA100 0.6477
Daily SMA200 0.6501
Previous Daily High 0.6488
Previous Daily Low 0.6398
Previous Weekly High 0.6504
Previous Weekly Low 0.6397
Previous Monthly High 0.6741
Previous Monthly Low 0.6453
Daily Fibonacci 38.2% 0.6454
Daily Fibonacci 61.8% 0.6432
Daily Pivot Point S1 0.6412
Daily Pivot Point S2 0.636
Daily Pivot Point S3 0.6322
Daily Pivot Point R1 0.6502
Daily Pivot Point R2 0.654
Daily Pivot Point R3 0.6592




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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.


GBP/USD loses 1.2700 as the dollar keeps rallying

GBP/USD approaches its weekly low at 1.2674 as demand for the American currency extends into the final trading session of the week. Hopes for a UK trade deal with the EU doing little for Sterling.


Gold: Finally some rest bite as XAU/USD holds at $1865 per ounce

It has not been the best week for the gold bugs as the yellow metal has fallen 4.36% since Monday. At the end of the week, the price has started to consolidate at the USD 1865 per ounce area. 

Gold News

Breaking: ​​​​​​​The IRS makes it hard to pretend you don’t have Bitcoin

The cryptocurrency holders might have a hard time trying to hide their Bitcoins or other digital assets. IRS considers changing the standard 1040 form by including a bold question on the front page:  At any time during 2020, did you sell, receive, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

Read more

WTI moves back to flat and once again trades above $40 per barrel

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December.

Oil News