Weak U.S. and Chinese data and surging coronavirus cases in Singapore? What’s that?!
After the dollar’s domination during the U.S. session, Asian session traders focused on taking risks today.
Check out the main headlines, and why NZD/USD is an interesting pair to look at right now.
Fresh Market Headlines & Economic Data:
- Poloz sees parts of Canadian economy beginning to restart in ‘late May’
- Poloz: it may take “a couple of years” to recover lost ground
- Trump issues guidelines to open up parts of US where coronavirus cases are in decline
- China’s virus-hit economy set to post first decline since at least 1992
- China March industrial output falls 1.1% year-on-year, better than forecast; first-quarter investment slides 16.1%
- Japan’s industrial production revised down from +0.4% to -0.3% n February
- Oil rises as Russia and Saudi Arabia hint at further production cuts
- Singapore has worst day in outbreak as cases double over a week
- China urges World Bank to suspend debt payments for poorest countries
Upcoming Potential Catalysts on the Economic Calendar:
- Italy’s trade balance at 8:00 am GMT
- Euro Zone’s final CPI at 9:00 am GMT
What to Watch: NZD/USD
With Asian session traders focusing on the possibility of a drug that promotes “rapid” recovery among coronavirus patients, it’s no wonder that high-yielding bets like the comdolls made pips rain.NZD/USD has popped up from a trend line support and is now trading just above the .6000 handle.
As you can see, its current levels lines up with a 50% Fib retracement and an area that has been catching the bulls and bears’ attention since late March.
Kiwi bears who think that NZD/USD hitting its daily average volatility spells intraday reversal can short at current levels and aim for another trend line support. The 100 SMA crossing below the 200 SMA wouldn’t hurt either.
Meanwhile, NZD/USD bulls can buy at a break above the pair’s current consolidation or the Fib retracement levels. The 1.6100 – 1.6125 previous areas of interest make for good profit targets if the bullish momentum is sustained.