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NZD/USD remains choppy in a familiar territory below 0.6000

  • NZD/USD bears catch a breath after cheering three-day losing streak.
  • Risk-tone recovers as oil debacle stops, US economy inches closer to re-open.
  • Pandemic curved flattens in the US, Europe, worries for Asia stay.
  • A lack of major data at home will keep the kiwi at the mercy of overseas catalysts.

NZD/USD takes rounds to 0.5950 during the early Asian session on Thursday. In doing so, the kiwi pair stays inside a choppy range between 0.5940 and 0.5960 established since early US session. The reason for the dormancy could be a lack of major catalysts amid consolidating markets.

With a pause in oil slump, coupled with the European Central Bank’s (ECB) further actions, not to forget the US President Donald Trump’s sustained push for economic restart, global markets recovered the previous day.

Also contributing to the risk reset could be the flattening of the coronavirus (COVID-19) curves in the US, Europe and the UK, except worries from Asia, as well as readiness by the global oil majors to tame the bears.

Recently, US President Donald Trump again pinched for the economic restart while also pouring on the face of those who cited risks of resurgence.

That said, the US Treasury yields and Wall Street recovered on Wednesday while the stock futures are flashing mild losses by the press time.

Given the lack of major data/events at home, traders will keep eyes on the preliminary figures of Australia’s March month trade performance ahead of waiting for the US Jobless Claims and Markit PMIs.

Technical analysis

While sustained trading below 21-day SMA, currently near 0.5985, keeps sellers hopeful, 0.5920 could restrict the pair’s near-term declines. On the contrary, a clear break above 0.5985 may have to stay strong beyond the weekly top of 0.6092 to challenge the monthly high surrounding 0.6130. 

 

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