NZD/USD tests 5-day MA below 0.61
- NZD/USD drops on renewed trade concerns and risk-off tone in stocks.
- The Kiwi trades near the 5-day average support, having printed a high of 0.6126 early Friday.
The New Zealand dollar is on the offer on Friday with renewed fears of a trade war weighing over the risk sentiment.
The NZD/USD pair is currently trading at 0.6096, representing a 0.5% decline on the day, having tested the 5-average average of 0.6090 a few minutes before press time.
The bird starting losing altitude after President Trump expressed displeasure over China's handling of the coronavirus situation and said he could use tariffs to respond to the world's second-largest economy. "China's a very sophisticated country and they could have contained it. They were either unable to or they chose not to. And the world is suffering greatly," said Trump.
Additional downward pressure could be emanating from the risk-off tone in the equity markets. While the futures on the S&P 50 are currently down 1%, major Asian stock market indices like Japan's Nikkei and Australia's S&P ASX 200 are reporting at least 1% losses. The S&P 500 futures are flashing red, possibly in response to the sobering comments from Amazon and Apple about the impact of the coronavirus.
New Zealand's Treasury was out on the wires a few minutes ago stating that high-frequency indicators are showing an uptick in the economic activity. So far, however, the positive comments have failed to put a bid under the NZD.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
