- NZD/USD remains on the front foot following the latest risk-on sentiment.
- Updates concerning the coronavirus cure, US economy re-start recently propelled the risk-on.
- China’s GDP will be the key to watch while pandemic news could keep the driver’s seat.
NZD/USD extends the early-Asia gains while taking the bids to 0.6015, up 0.67% on a day, during the initial trading session. While promising results from the Gilead’s Remdesivir were the initial catalyst to change the market mood, US President Donald Trump’s upbeat comments recently managed to keep the risk-on.
CNBC was quick to roll out the news that the Gilead drug is showing effectiveness in treating the coronavirus (COVID-19) during the clinical trials. The update managed to recall the risk-takers while fueling S&P ETF more than 2.0% just after the release.
While the markets were already cheering the upbeat news of a cure to the pandemic, US President Trump released guidelines to re-open the economies in three phases. The leader also cited optimism concerning the death toll due to the virus. It’s worth mentioning that Reuters’ tally suggested, on Thursday, the biggest single-day surge in the US death toll.
Amid all these, US 10-year Treasury yields rise more than six basis points (bps) in the Friday open to 0.673% by the press time whereas the US stock futures mark near 3.0% gains by the press time.
Traders are now waiting for China’s key GDP data for the first quarter (Q1) of 2020 that includes the period of an actual virus outbreak and economic damages to the world’s second-largest economy. Although forecasts suggest a -9.9% QoQ figure, the dragon nation has recently been providing positive surprises and could propel the risk-sentiment on another such performance.
Technical analysis
The pair’s bounce from a 21-day SMA level of 0.5950 suggests further recovery towards 0.6100 while 0.6130 mark, comprising 50-day SMA, could challenge the bulls afterward.
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