NZD/USD struggles to hold above 0.6300 amid soft New Zealand data


  • NZD/USD fails to keep the US dollar-backed bounce.
  • New Zeland ANZ – Roy Morgan Consumer Confidence, Total Filled Jobs came in softer than prior.
  • Fears of coronavirus continue to exert downside pressure on the commodities and the linked dollars.

NZD/USD continues the gradual weakness from a three-day high of 0.6335, marked yesterday, while declining to 0.6306 during early Friday morning in Asia. While the broad US dollar weakness pulled the pair back from multi-week high the previous day, recently downbeat data, as well as the sustained fears of coronavirus (COVID-19), exert downside pressure on the pair.

The latest data from New Zealand suggest February month ANZ – Roy Morgan Consumer Confidence weakened to 122.1 from 122.7 whereas Total Filled Jobs for January slipped to 2.2M versus 2.21M prior.

The US dollar dropped across the board on Thursday as diving equities and bonds drew traders off the greenback. The reason could be a nascent stage of the coronavirus outbreak in the US. The world’s largest economy registers some firsts as far as the COVID-19 is concerned. However, the US Centers for Disease Control and Prevention (CDC) showed plans to increase testing and research.

That said, the US 10-year treasury yields dropped to the record low of 1.244% the previous day before closing around 1.274% while Wall Street benchmarks marked 4.0% losses each.

The latest article from South China Morning Post (SCMP) signals the second wave of coronavirus-led supply chain disruptions in China, Japan and South Korea, which in turn keeps the risk aversion on the cards.

However, any clues of the cure and/or positive news from the US could help keep the latest pullback in the kiwi. On the economic calendar, the US data will be in the spotlight during the later part of the day.

Technical Analysis

Failure to provide a daily closing beyond November 2019 bottom close to 0.6315 continues to drag the quote towards lows marked during October 2019 around 0.6240 and 0.6200.

Additional important levels

Overview
Today last price 0.6307
Today Daily Change 11 pips
Today Daily Change % 0.17%
Today daily open 0.6296
 
Trends
Daily SMA20 0.6411
Daily SMA50 0.6544
Daily SMA100 0.6485
Daily SMA200 0.6492
 
Levels
Previous Daily High 0.6328
Previous Daily Low 0.6292
Previous Weekly High 0.6449
Previous Weekly Low 0.6303
Previous Monthly High 0.6741
Previous Monthly Low 0.6453
Daily Fibonacci 38.2% 0.6306
Daily Fibonacci 61.8% 0.6315
Daily Pivot Point S1 0.6282
Daily Pivot Point S2 0.6269
Daily Pivot Point S3 0.6246
Daily Pivot Point R1 0.6319
Daily Pivot Point R2 0.6342
Daily Pivot Point R3 0.6355

 

 

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