NZD/USD steadies near mid-0.56s, erases around 1% on the day
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NZD/USD stays below 0.6100 amid quiet markets due to Good Friday

  • Barring some ticks due to the lack of liquidity, NZD/USD remains mostly quiet.
  • Broad US dollar weakness favors the kiwi pair’s latest up-moves.
  • New Zealand markets are off but China data could offer some moves.

While extending the previous day’s moves, NZD/USD seesaws around 0.6080 amid the early Asian session on Good Friday. As most markets are closed, including those in New Zealand, the lack of liquidity is a concern for the pair ahead of China’s monthly inflation data. Even so, broad US dollar weakness helps the buyers to remain hopeful.

The quote remains positive for the fifth day in a row as the greenback continues to bear the burden of the coronavirus crisis. Also drowning the US currency could be the downbeat comments from the Fed Chair Jerome Powell and disappointing data.

The US becomes the second highly affected nation due to the coronavirus (COVID-19) with the latest stats putting it near to the unfortunate global leader Italy.

The Fed Chairman Jerome Powell cited fears of the downbeat economic performance during the second quarter (Q2) of 2020 ahead of witnessing recovery in the second half of the year.

On the data front, US Jobless Claims registered another figure above six million and raised doubts on the future unemployment rate figures. Also on the pessimistic side was the US Michigan Consumer Sentiment that dropped to an eight-year low of 71.00 in April, as per the first revision on the initial forecast.

Looking forward, China’s March month Consumer Price Index (CPI) and Producers Price Index (PPI) will be the key for traders to look for intermediate moves amid the calm hours. Forecasts suggest that the headline CPI may drop from 5.2% to 4.8% on YoY while the MoM figures suggest more weakness to -0.7% versus +0.8% earlier readouts. Further, the PPI might also soften to -1.1% against -0.4% previous mark.

Technical analysis

A three-week-old rising trend line and 21-day SMA, respectively near 0.5970 and 0.5920, could keep the pair’s short-term declines limited. Meanwhile, a 50-day SMA level of 0.6175 remains on the bulls’ radars as the immediate target during the further advances.

 

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