- The NZD/USD feels the force of gravity, risk sentiment is weakening on the us-China tussle.
- The pair has been trapped in a narrowing narrowing of the price range, according to the daily chart.
NZD/USD is trading in the red to near-0.6110-to-press-time, had to face rejection 0.6130 early Friday.
On Thursday, the pair traded well within Tuesday’s high and low, and formed an inside day candlestick. Although the pair was nursing losses at the time of the press, he was still trapped in Thursday trading.
Essentially, the pair has been trapped in a narrowing narrowing of the price range. As a result, the short-term outlook is neutral. Now, under Thursday’s low, or 0.6106 to confirm the range ventilation. On the higher side, 0.6150, it is the level to beat for the bulls.
A downside break seems likely that futures contracts on the S&P 500 are reporting a weakening of risk sentiment, in spite of the decision of China to raise its budget deficit target. The dragon nation is planning to spend more this year, at the battle of the corona virus-induced slowdown.
The escalating us-China tensions around the corona virus outbreak and their respective interests in Taiwan and Hong-Kong-looks-to-be is weighing on risky assets.
Also, the case for the range ventilation looks “strong” due to the dovish comments by the Reserve Bank of New Zealand, the diplomatic area, governor Orr. The chief said Saturday morning that the central bank might use more stimulus measures if necessary, especially in the form of increased bond purchases. During this time, the finance minister said, ” the concept of helicopter money (fiscal stimulus measure is being discussed
The Daily chart
Long-term trend: Downside below Thursday’s low