NZD/USD trades heavy in the open on a firmer US dollar

  • NZD/USD stalling on its correction as US dollar firms.
  • The 38.2% Fibo broken below on Thursday in the DXY at 99.98 is so far capping.

NZD/USD rose from a 0.5910 low to 0.6040 on Friday but the dollar is a little firmer in the open this week which is weighing on the bird, -0.47% at the time fo writing, with the price moving from a high of 0.6033 to a low of 0.5992. The markets are in a state of flux and pouncing on every bit of encouraging news that can possibly surface from the COVID-19 crisis. 

First and foremost, the bird is weak following the Reserve Bank of New Zealand (RBNZ) decision to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds to support the economy amid the coronavirus outbreak.

The programme, which aims to provide further support to the economy, build confidence, and keep interest rates on government bonds low and what was announced on the 22nd March, is buying up to NZ$30 billion ($17 billion) of New Zealand government bonds, across a range of maturities, in the secondary market over the next 12 months, RBNSZ said in a statement.

In the latest move, in addition to the prior package, the RBNZ is to provide additional liquidity to the corporate sector via a new weekly Open Market Operation (OMO) that offers another channel for banks to continue funding their corporate clients. The new corporate OMOs will be held each Tuesday and operate similar to the reserve bank's regular OMOs. “Our objective is to encourage banks to continue to fund their corporate clients by purchasing their debt securities, given the confidence that these securities can be funded by exchanging them with us for cash. In this way, by banking the banks, we are ensuring large businesses can better manage their cash flows, and lower their funding costs," said Assistant Governor Christian Hawkesby – adding – “we are committed to support smooth market functioning,” he said.

The US dollar bounces back

As for the US dollar,  huge-scale Federal Reserve and Treasury backstopping against virus losses and the US stock markets failure to maintain a bid into Friday's close and month-end sparked up fresh uncertainty about further USD selling. The DXY has popped in the open, rallying off the daily cloud top and back above a 50% Fibo of the March recovery and the March 13 swing high today. A 38.2% Fibo broken below on Thursday at 99.98 is so far capping the rebound and investor will be waiting patiently in the wings for the House debate over the coronavirus relief bill.

NZD/USD levels


Today last price 0.6011
Today Daily Change -0.0026
Today Daily Change % -0.43
Today daily open 0.6037
Daily SMA20 0.6053
Daily SMA50 0.6289
Daily SMA100 0.6422
Daily SMA200 0.6439
Previous Daily High 0.607
Previous Daily Low 0.591
Previous Weekly High 0.607
Previous Weekly Low 0.5589
Previous Monthly High 0.6504
Previous Monthly Low 0.6192
Daily Fibonacci 38.2% 0.6009
Daily Fibonacci 61.8% 0.5971
Daily Pivot Point S1 0.5941
Daily Pivot Point S2 0.5846
Daily Pivot Point S3 0.5782
Daily Pivot Point R1 0.6101
Daily Pivot Point R2 0.6165
Daily Pivot Point R3 0.6261





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 struggles around 1.19 amid Fed-fueled dollar strength

EUR/USD is under pressure around 1.19, as the dollar remains on the offensive following the Federal Reserve's hawkish decision on Wednesday. The bank is set to debate cutting down its bond buys and signaled raising rates sooner than anticipated. 


GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.


GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.


Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more