Forex News

Remains above 0.6000 amid holiday in New Zealand

  • NZD/USD seesaws near the upper limit of the last three days.
  • The coronavirus-led risk aversion remains in play.
  • The absence of Kiwi traders, a lack of major data/events may keep markets calm with virus updates on the driver’s seat.

Despite the last-minute drop from 0.6016 to 0.6010, NZD/USD stays above 0.6000 mark amid the initial Asian session on Monday. While the broad US dollar weakness earlier pushed the Kiwi pair to the north, the ANZAC Day holiday in New Zealand restricts the pair’s immediate moves. Even so, the coronavirus (COVID-19) fears keep the pair’s upside guarded.

The latest figures from the Centers for Disease Control and Prevention (CDC) suggest that the US death toll, due to the virus, surged to 52,459 versus the previous day update at 50,439. The news also suggests total virus infections at 928,619 as of 4:00 PM April 26 against 895,766 at 4:00 PM on April 25.

Despite no major recovery in the fatalities, US President Donald Trump keeps pushing for the early economic restart while also suggesting a nearness to the vaccine during his previous coronavirus task force briefings.

However, disappointing results of his championed drug during the initial trials as well as downbeat data seem to have weighed on the US dollar off-late.

On the contrary, New Zealand has been witnessing a steady improvement while also nearing a plan to exit the lockdowns.

Amid all these plays, the risk-tone sentiment remains heavy. As a result, S&P 500 Futures drop 0.40% to 2,817 by the press time.

Moving on, an absence of major data/events, as well as off at New Zealand, will keep the Kiwi pair’s moves limited. However, virus updates might not hesitate to propel the quote in case of any surprise announcements.

Technical analysis

Sustained trading above 21-day SMA, currently near 0.5995, enables the Kiwi pair to aim for a two-week-old resistance line, at 0.6045 now.


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