NZD/USD ignores comments from NZ FinMin, struggles to hold 0.5700
- NZD/USD struggles to hold onto recovery gains.
- NZ FinMin Robertson signaled further QE from the RBNZ.
- Trump tried to reduce disappointment from the Senate’s failure to pass the COVID-19 Bill.
- Virus /stimulus headlines will join the early-month PMIs to offer another busy day.
Following the heavy fight against the coronavirus (COVID-19) by the US and New Zealand authorities, which helped the kiwi pair to recovery, NZD/USD seesaws around 0.5700 amid the early Tuesday’s Asian session. In doing so, the quote pays a little heed to the New Zealand (NZ) Finance Minister (FinMin) Grant Robertson’s signals for further stimulus.
The NZ FinMin Robertson recently mentioned that the RBNZ has an NZ$30b program but can do more. Though, his words fail to carry the pair’s recovery moves. The reason could be US President Donald Trump’s comments that the virus cases will increase.
Not only the Quantitative Easing (QE) and lockdown measures but the readiness to infuse markets further helped the quote to snap the previous four-day losing streak on Monday. However, the US Senate’s failure to pass the Trump administration’s COVID-19 Bill spread joined the widespread outbreak of the virus to spread the risk-off.
While portraying the same, Wall Street registered another day of losses whereas the US 10-yer treasury yields also drop below 0.80%. However, the recent market mood seems to recover as the US stock futures are flashing the green signals by the press time.
Investors will now pair attention to the preliminary PMI data from the US, coupled with virus and stimulus headlines, for fresh impulse. It should also be noted that drug discovery is gaining the market’s attention and any more positive news on the same could renew the trade positive sentiment.
Technical Analysis
An eight-day-old falling trend line near 0.5745/50 acts as the key to pair’s further run-up towards 0.5800, failing to clear the same can recall sub-0.5600 area on the charts.