- NZD/USD keeps the bounce off 0.6408 while ignoring downside Total Filled Jobs for May.
- The risk-off mood continues to exert downside pressure on the Antipodeans.
- Virus woes firing on all cylinders while trade wars and geopolitical tension also weigh on the market sentiment.
NZD/USD stays depressed around 0.6415 amid the initial Asian trading session on Monday. While its early-day U-turn from 0.6402 continues to portray the pair’s ability to stay beyond 21-day EMA, the quote prints two-day losing streak by the press time.
New Zealand’s May month Total Filled Jobs softened to 1.7 million versus 2.16 million prior readouts. The data failed to offer any major negative to the NZD/USD prices, the quote rose from 0.6413 to 0.6418 after data. However, broad moves suggest the downbeat trading performance considering the fears of coronavirus (COVID-19).
Read: New Zealand Total Filled Jobs: 1.7M vs 2.16M previous, Kiwi unchanged
In addition to above 5,000 cases for the last seven days from Texas, calling of Wuhan-like lockdowns in China’s Anxin county renew fears that the pandemic wave 2.0 is brewing strongly. Global COVID-19 death toll nears half a million whereas 14-day average cases in California suggest a modestly upward trend, as per Reuters. Amid the virus outbreak, various campaigns for the US Presidential elections have been either called off or delayed, which in turn keeps the market mood sober.
Other than the deadly disease, the India-China geopolitical tension and trade wars among the key global economies also weigh on the market’s risk-tone sentiment. Border conditions between India and China have been worsening off-late following the Galawan tussle. On the other hand, US threats to levy tariffs on the UK, European Union and Canada, not to forget the America-Iran tension, keep the trade war fears of the spotlight.
While portraying the risks, Wall Street and the US 10-year treasury yields remained on the back foot on Friday. Further, S&P 500 Futures keeps the risk-tone heavy while flashing near 0.50% losses to 2,992 as we write.
Considering the lack of major data/events up for publishing during today’s Asian session, pair traders will keep eyes on the virus/trade updates, not to ignore geopolitics, for near-term direction. During the US session, the Dallas Fed Manufacturing Business Index and Pending Home Sales will entertain the market players.
Technical analysis
Friday’s bearish spinning top candlestick formation on the daily chart above 21-day EMA portrays the traders’ indecision. As a result, sellers are waiting for a clear break below 0.6400. Alternatively, the monthly falling trend line, at 0.6505 now, becomes the key resistance to watch during the pair’s pullback moves.
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