- NZD/USD bounces off 0.6255 following the latest swing the US dollar, risk-tone.
- New Zealand Electronic Card Retail Sales surprised to the upside in February.
- Absence of US President Trump’s ‘major’ announcement, coronavirus updates weigh on the risk-tone.
- The COVID-19 updates remain as the key to follow for near-term direction.
With the fresh challenges to Tuesday’s broad risk rebound crossing wires, not to forget New Zealand data, NZD/USD recovers to 0.6275 amid the initial Asian session on Wednesday.
The pair recently benefitted from New Zealand Electronic Card Retail Sales data from February that surprised markets with upbeat releases. Not only the MoM figures of +0.6% versus +0.3% forecast and downwardly revised -0.2% prior but a huge 8.6% rise on the yearly basis compared to 4.1% expected and 4.2% previous also please the kiwi buyers off-late.
Also contributing to the pair’s bounce could be the US dollar’s latest pullback after marking noticeable gains the previous day. The greenback might have taken clues from the absence of any strong details of President Donald Trump’s earlier signal to ‘major’ economic response to coronavirus (COVID-19).
It should also be noted that the rising death toll in the US, to 24 now, join the outbreak in the UK and Europe to offer additional burden on the risk tone. As a result, the US equity futures fail to extend the Wall Street gains marked by the end of Tuesday.
Moving on, investors will keep eyes on the updates from RBNZ as the central bank recently (again) turned down the odds of any immediate reaction to the pandemic. Analysts at the Australia and New Zealand Banking Group (ANZ) consider it as positive for the kiwi while saying, “We remain of the view that the Kiwi will weaken into this global shock, but with the RBNZ outwardly confident time’s on its side, and questioning veracity of cuts at this juncture (ahead of the planned fiscal response), the NZD’s tenure on borrowed time looks to have gotten an extension.”
Additionally, coronavirus updates and any surprise announcements from the US government to tame the negative implications of the disease could also entertain the traders ahead of the US CPI data.
Technical Analysis
Sustained trading below the yearly trend line, at 0.6400 now, directs the pair down towards revisiting the last week's low near 0.6200.
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.
Recommended content
Editors’ Picks
EUR/USD consolidates gains below 1.1400 on weaker US Dollar
EUR/USD consolidates its recovery gains below 1.1400 in early Europe on Monday. Upbeat risk sentiment on Trump's tairff concession news fails to lift the US Dollar, supporting the pair. US-China trade headlines will continue to dominate ahead of Fedspeak.
GBP/USD climbs above 1.3150 as USD sellers refuse to give up
GBP/USD preserves its bullish momentum and trades above 1.3150 in the European session on Monday. The sustained US Dollar weakness suggests that the path of least resistance for the pair remains to the upside. US-China trade updates remain in focus.
Gold retreats from record-high, holds above $3,200
Gold pulls away from the new record-high it set at $3,245 at the weekly opening but manages to hold comfortably above $3,200. Easing concerns over a deepening trade conflict between the US and China seem to be causing XAU/USD to enter a consolidation phase.
Six Fundamentals for the Week: Tariffs, US Retail Sales and ECB stand out Premium
"Nobody is off the hook" – these words by US President Donald Trump keep markets focused on tariff policy. However, some hard data and the European Central Bank (ECB) decision will also keep things busy ahead of Good Friday.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.