NZD/USD stays positive towards 0.5850 after New Zealand trade data, RBNZ’s QE


  • NZD/USD registers a three-day winning streak.
  • Risk-tone remains positive amid hopes of further stimulus from the US.
  • US data, coronavirus headlines and the COVID-19 Bill expectations in the spotlight.

With New Zealand’s February month trade data coming in better than previous, backed by the RBNZ’s QE proposal, NZD/USD extends the recovery gains to 0.5840 amid the early Wednesday morning in Asia.

New Zealand’s February month Trade balance recovered from $-3.87B previous to $-3.26B. Details suggest the mixed moves by the Imports and the Exports data as the former weakened from $5.073B to $4.33B while the later rose to $4.92B versus $4.73B earlier readouts.

The pair recently took clues from the RBNZ’s proposal of 250 million New Zealand dollar worth of government bond-buying as a part of its first tranche of the Quantitative Easing (QE). The move is a part of the central bank’s earlier pledged $30 billion of New Zealand Government Bond (NZGB) purchase with a range of maturities across the yield curve over the next 12 months.

Also affecting the quote’s latest moves were optimism surrounding the US COVID-19 Bill, the Fed’s unlimited QE and the reduction in Italy’s death toll. The trifecta impact boosted the market’s risk tone together with the US 10-year treasury yields and equities.

Markets are likely to await further details on how much and when the US aid package will be announced. Also on the traders’ radar will be the coronavirus headlines as well as the US data concerning the February month Durable Goods Orders, expected -0.8% versus -0.2%.

Technical Analysis

While 10-day SMA, currently near 0.5870, acts as the immediate upside barrier for the pair, last Wednesday’s top near 0.5970 and 0.6000 mark could restrict its further recoveries. On the downside, 0.5740 and 0.5600 should be watched carefully during the quote’s fresh declines.

Additional important levels

Overview
Today last price 0.5838
Today Daily Change 120 pips
Today Daily Change % 2.10%
Today daily open 0.5718
 
Trends
Daily SMA20 0.6129
Daily SMA50 0.6345
Daily SMA100 0.6439
Daily SMA200 0.6452
 
Levels
Previous Daily High 0.5739
Previous Daily Low 0.5589
Previous Weekly High 0.6151
Previous Weekly Low 0.547
Previous Monthly High 0.6504
Previous Monthly Low 0.6192
Daily Fibonacci 38.2% 0.5681
Daily Fibonacci 61.8% 0.5646
Daily Pivot Point S1 0.5625
Daily Pivot Point S2 0.5532
Daily Pivot Point S3 0.5475
Daily Pivot Point R1 0.5775
Daily Pivot Point R2 0.5832
Daily Pivot Point R3 0.5925

 

 

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