- NZD/USD fails to carry the previous two-day gains forward.
- Risk-tone heavies, RBNZ Assistant Governor shows readiness to increase the size of the QE.
- GDT Price Index offered positive surprise but coronavirus recently weighed on the trading sentiment.
Following the RBNZ’s sustained favor for increasing the size of the QE, NZD/USD drops to the intraday low of 0.5960 amid Wednesday’s Asian session. With that, the pair defies the previous two-day winning streak amid recently cautious trade sentiment.
The RBNZ Assistant Governor Christian Hawksby recently crossed wires while showing openness to increase the size of the Quantitative Easing (QE) as citing a rapidly evolving situation.
Elsewhere, the latest swing in the coronavirus (COVID-19) numbers from global hotspots, namely the US, Europe and the UK, as well as virus-led emergencies in Japan, also weighed on the market’s risk-tone off-late.
That said, US President Donald Trump struck a cautiously optimistic tone during his Tuesday’s Coronavirus Task Force Briefings but failed to convince the risk-takers.
While portraying the risk-tone, the US 10-year Treasury yields drop two basis points (bps) to 0.717% whereas Japan’s NIKKEI begins the day on the negative side.
It should also be noted that New Zealand’s GDT Price Index earlier rose beyond -3.9% prior contraction to +1.2% with a 2.1% gain in Whole Milk Powder (WMP) prices.
Given the lack of major data, the kiwi pair will take clues from virus updates while any surprise announcements from the US and/or New Zealand could keep traders busy.
Unless declining back below 0.5930, comprising 21-day SMA, buyers can’t lose hope to regain 0.6000 and confront the March 27 high near 0.6070 during the extra rise.
Additional important levels
|Today last price||0.5962|
|Today Daily Change||-15 pips|
|Today Daily Change %||-0.25%|
|Today daily open||0.5977|
|Previous Daily High||0.6016|
|Previous Daily Low||0.592|
|Previous Weekly High||0.6064|
|Previous Weekly Low||0.5843|
|Previous Monthly High||0.645|
|Previous Monthly Low||0.547|
|Daily Fibonacci 38.2%||0.5979|
|Daily Fibonacci 61.8%||0.5957|
|Daily Pivot Point S1||0.5926|
|Daily Pivot Point S2||0.5875|
|Daily Pivot Point S3||0.583|
|Daily Pivot Point R1||0.6022|
|Daily Pivot Point R2||0.6067|
|Daily Pivot Point R3||0.6118|
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.