NZD/USD recovers above 0.6600 after early Thursday sell-off

• Risk-off markets send the Kiwi spiraling, recovery sees the pair hobbled above 0.6600.
• Thin post-holiday market liquidity is seeing extreme moves exacerbated, heavy fading action seen on the charts.

NZD/USD is trading into 0.6625 as the pair looks set to flub the early market’s recovery of Thursday’s opening currency collapse. The Kiwi whipsawed to an initial high of 0.6682 before slumping to a new nine-week low of 0.6590 before fading the initial drop alongside broader markets, though the pair is struggling to maintain near-term bullish momentum beyond the 0.6600 handle.

Broad-market sentiment has swung firmly bearish for Thursday as the overnight session opened up with a quick plummet for risk-based assets across the board, fueled by investors getting thoroughly spooked by increasing evidence of a global growth slowdown. Apple Inc. revised their 2019 first-quarter growth projections firmly to the downside, placing the blame on China’s own economic downturn, and traders are balking at the evidence that the US-China trade war is taking a much steeper toll on global growth than many were prepared for.

NZD/USD Technical Levels