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

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.