NZD/USD snaps two-day winning streak to stay below 0.6000 after RBNZ comments


  • 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.

Technical analysis

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

Overview
Today last price 0.5962
Today Daily Change -15 pips
Today Daily Change % -0.25%
Today daily open 0.5977
 
Trends
Daily SMA20 0.5929
Daily SMA50 0.62
Daily SMA100 0.639
Daily SMA200 0.6413
 
Levels
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

 

 

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