Thanks to the Fed’s stimulus and hopes of lower coronavirus cases, high-yielding bets like the Aussie and Kiwi gained pips against safe havens like the dollar.
Asian session traders aren’t as optimistic, however.
Read the headlines below and check out to see why NZD/USD is providing a neat trend opportunity:
Fresh Market Headlines & Economic Data:
- Cauliflower leads New Zealand food price increase in March
- Trump says close to plan to reopen economy possibly, in part, before May 1
- Australia sells A$13B of bonds in biggest sale on record
- Australian consumer sentiment drops most in 47-year history
- China adds liquidity, trims rates ahead of poor GDP data
- Asia shares take a breather
Upcoming Potential Catalysts on the Economic Calendar:
- France’s final CPI at 6:45 am GMT
- U.S. retail sales out at 12:30 pm GMT
- NY manufacturing index at 12:30 pm GMT
- BOC’s policy decision at 2:00 pm GMT
What to Watch: NZD/USD
A round of risk-taking boosted comdolls like the Kiwi during the U.S. session.
The optimism didn’t extend to the Asian session, though, as countries like Singapore and Korea have hinted that economies might have to deal with the pandemic longer than the U.S. session folks are pricing in.It also didn’t help that China had made more stimulus rain, and that higher-yielding comdolls have found technical resistance levels across the board.
NZD/USD has found resistance at .6130 and is heading fast towards the big .6000 handle.
As you can see, the area lines up with the 200 SMA and a trend line support that hasn’t been broken since late March.
Kiwi bulls can start loading long positions around .6000 and target NZD/USD’s previous highs for a good R:R.
If you’re one of them market bears, however, and if you believe that today’s set of Londoon and U.S. session economic reports will make bigger dents on risk appetite, then you can also wait for a break of the trend line and target areas of interest near .5925 or .5850 instead.