NZD/USD trades above 0.5830, adds more than 2% on USD selloff, upbeat sentiment

  • Global equity indexes rise sharply on Monday as risk appetite returns.
  • USD continues to weaken against major rivals following Fed's policy actions.
  • Coming up: Markit Manufacturing and Services PMI figures from US. 

The NZD/USD pair closed the first day of the week with small gains above the 0.5700 handle and gained traction on Tuesday as the improving market sentiment helped the risk-sensitive NZD find demand. As of writing, the pair was trading at 0.5835, adding 2.02% on a daily basis.

Risk-on flows lift NZD/USD on Tuesday

Drastic drastic measures taken by major central banks to support financial markets finally seem to be providing the relief investors need since the coronavirus crisis began. Reflecting the upbeat mood, Germany's DAX is up 6.4% on the day while the Euro Stoxx 50 is adding 5.75%. Moreover, the S&P 500 futures hit the upper limit of 5% on Tuesday to suggest that Wall Street is likely to open the day sharply higher.

On the other hand, with the Federal Reserve launching an open-ended quantitative easing program on Monday, the buying pressure on the USD softened and helped the pair push higher. The US Dollar Index, which tested the 103 mark at the start of the week, was last seen erasing 1.22% on the day at 101.22.

During the American trading hours on Tuesday, the IHS Markit's preliminary Manufacturing and Services PMI figures will be watched closely by the market participants for fresh clues regarding the slowdown in the economic activity.

Technical levels to watch for


Today last price 0.5817
Today Daily Change 0.0099
Today Daily Change % 1.73
Today daily open 0.5718
Daily SMA20 0.6129
Daily SMA50 0.6345
Daily SMA100 0.6439
Daily SMA200 0.6452
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



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD extends sideways grind around 1.1650 after mixed US data

EUR/USD is struggling to find direction on Thursday and continues to fluctuate in a relatively tight range around mid-1.1600s. Mixed data releases from the US don't seem to be having a noticeable impact on the greenback's performance against its major rivals.


GBP/USD struggles to pull away from 1.3800

GBP/USD retraced a portion of Wednesday's during the European trading hours pressured by the renewed USD strength and the souring market mood. With the latest US data failing to trigger a reaction, the pair stays in a consolidation phase near 1.3800.


XAU/USD struggles for direction, flat-lined above $1,780 level

The risk-off impulse in the markets extended some support to the safe-haven gold. Elevated US bond yields, a modest USD strength capped the upside for the metal. Bulls need to wait for a move beyond the $1,800 mark before placing fresh bets.

Gold News

Buying Solana now to gain 700% profits by 2022

Solana price has been on a massive run-up in 2021 from $1 to $216 in roughly eight months. This stellar climb is likely to continue into 2022 as significant bullish signs emerge. Moreover, the start of a new bull run will serve as a tailwind for SOL.

Read more

Netflix: Three reasons to sell NFLX after earnings

NFLX has been strong into earnings as investors digested the massive success of Squid Game and hoped this would feed through into very strong subscriber numbers. Netflix was out straight after the bell with earnings.

Read more