Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
New Zealand Dollar Stalls? Dow Jones Turns, Stat Flaks Moderna Vaccine

New Zealand Dollar Stalls? Dow Jones Turns, Stat Flaks Moderna Vaccine

Daniel Dubrovsky, Strategist

New Zealand Dollar, NZD/USD, Brexit, Moderna, Virus Vaccine – Asia Pacific Market Open

The growth-linked New Zealand Dollar managed to hang on to most of its gains over the past 24 hours despite a downturn in sentiment during the final hours of the North American trading session. That sent the Dow Jones and S&P 500 -1.59% and -1.05% respectively as my Wall Street index rejected critical resistance from April. The anti-risk Japanese Yen trimmed losses as the haven-linked US Dollar ended relatively flat.

USD Forecast
USD Forecast
Recommended by Daniel Dubrovsky
What is the road ahead for the US Dollar?
Get My Guide

Equities and the British Pound received a boost in late Asia Pacific trade when reports crossed the wires that the United Kingdom announced a new post-Brexit tariff regime. The plan would cut about GBP30 million in tariffs after the nation leaves the European Union following the 11-month transition period. This expires at the end of this year. This update reversed some weakness Sterling saw after Brexit talks recently disappointed.

Sentiment noticeably soured after Stat – a health-oriented US journalism company – criticized Moderna’s virus drug trial study that sent markets soaring yesterday. The report said that the company withheld ‘key information’ about its Covid-19 vaccine. It also highlighted that the study did not produce enough critical data in order to assess its success.

In the White House, President Donald Trump said today that ‘there is tremendous progress’ on a vaccine and that the country is ‘way ahead’ of schedule on cures. Meanwhile Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin testified before the Senate. The former warned that lasting unemployment could weigh on the economy for years as the latter anticipated economic improvements in the second half of 2020.

Discover your trading personality to help find forms of analyzing financial markets

Wednesday’s Asia Pacific Trading Session

Asia Pacific benchmark stock indexes – such as the Nikkei 225 and ASX 200 – could follow the pessimistic mood from the Wall Street trading session. That may continue to drain some of the gains NZD/USD accumulated as of late. A deterioration in market mood may also help to alleviate some declines the Yen and US Dollar experienced.

New Zealand Dollar Technical Analysis

NZD/USD seems to have set a third lower high since prices appeared to peak in late April. Prices paused the latest bounce just under key resistance which is a range between 0.6130 – 0.6156. Prices appear to be facing immediate support at 0.6069. A turn lower from here places the focus on the 0.5989 – 0.6014 inflection range. Beyond that area sits 0.5918. Uptrend resumption through resistance exposes 0.6190.

NZD/USD Mixed
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 5% 1% 4%
Weekly -15% -10% -13%
What does it mean for price action?
Get My Guide

NZD/USD – 4-Hour Chart

NZD/USD 4-Hour Chart

Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES