- NZD/USD inches higher as US equity markets recover
- Stabilizing oil prices support the pair
- The Kiwi targeting highs of $0.6040
The NZD/USD pair edge higher on Thursday gaining 0.47% to 0.5980. This was triggered by the Kiwi strengthening against the dollar as market sentiment changed with investors becoming upbeat with the rebound of global oil prices and equity markets.
Stabilizing oil prices lift NZD/USD
The New Zealand dollar rebounded from session lows as US stock futures also bounced with S&P 500 futures up to 2,722 points. The drop might have been in response to the comments of US CDC director that there could be a second wave of COVID-19 which will even be worse than the current pandemic.
However, a softer US dollar favored the currency exchange with the greenback being weighted the change in sentiment and the timid US PMI data as well as unemployment claims. As a result, the Kiwi has strengthened enabling it to retrace Wednesday’s losses and establish two-day highs around $0.6040.
Also, the New Zealand PM, Jacinda Arden has indicated that the government will be looking at various alternatives of stimulating the economy which also bode well for the Kiwi.
Analysis of NZD/USD
From a long-term perspective, the New Zealand dollar could be at risk owing to its response to the market in the coming weeks. Economic data coming out in the coming weeks could impact on the pair. It has shown signs of breaking lower and if sellers dominate past the immediate support at $0.5960 then a downward trend could resist more declines at $0.5900. Similarly, if the NZD/USD pair breaks past the 21-day EMA region of $0.6005 then it will form resistance at $0.6040.
Time : 24-04-2020
Pivot : 0.5988
Technical View : Long position above 0.6008.
Target : 0.6028.
Technical View : Short position below 0.5968.
Target : 0.5948.
Comments : Market sentiment on the pair has improved and now pair could be aiming above 0.6040 levels
Last Price : 0.5940