NZD starts the year still looking quite cheap
Forex News

NZD/USD finds support near 0.6450, stages modest recovery

  • Consumer confidence deteriorates in New Zealand in January.
  • US Dollar Index struggles to recover, stays below 98.
  • US PCE Price Index, Personal Spending and Personal Income data coming up next.

The NZD/USD pair closed the fifth straight trading day in the negative territory on Thursday and extended its slide on Friday to touch its lowest level since early December at 0.6454. Although the pair staged a technical recovery ahead of the American session, it’s still down 0.26% on the day at 0.6470.

Coronavirus fears weigh on antipodeans

China is having a difficult time containing the coronavirus outbreak and markets are concerned about the economic recovery, which has been gathering momentum in the last couple of months, losing strength. According to China’s envoy to the UN, Zhang Jun, the death toll currently stands at 213 and the total number of confirmed coronavirus cases in 9.809 as of early Friday.

China-proxy antipodeans, the AUD and the NZD, have been staying under selling pressure since the start of the week and those currencies are unlikely to stage a decisive rebound unless investors are convinced that the spread of the coronavirus is contained.

The US economic docket on Friday will feature the Personal Consumption Expenditures (PCE) Price Index, Personal Income and Personal Spending data for December. Ahead of these releases, the US Dollar Index is down 0.12% on the day at 97.75.

Technical levels to watch for

 

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