NZD/USD climbs to near 2-week tops, closer to mid-0.6300s

• NZD/USD manages to regain some traction amid persistent USD selling bias.
• The uptick seems unaffected by the coronavirus-led selloff in equity markets.
• Investors now look forward to the US NFP report for some respite for the USD.

The NZD/USD pair reversed an early Asian session dip to sub-0.6300 levels and jumped to near two-week tops, around the 0.6345 region in the last hour.

Following the previous session’s two-way moves, the pair managed to regain some positive traction on the last trading day of the week. The uptick was sponsored by the prevailing strong bearish sentiment surrounding the US dollar and seemed unaffected by a fresh wave of the global risk-aversion trade.

Weaker USD remains supportive

The greenback added to its recent losses and remained under some heavy selling pressure in the wake of a plunge in the US Treasury bond yields to record lows. The coronavirus-led selloff across global equity markets was seen boosting demand for more stable investments – like the US government debt.

Moreover, concerns about the economic impact of the virus outbreak now seemed to have forced investors to start pricing in another 50 bps rate cut by the Fed on March 18. This further aggravated the fall in the bond yields and exerted some additional downward pressure on the greenback.

It, however, remains to be seen if the pair is able to capitalize on the positive move or meets with some fresh supply at higher levels. Market participants now look forward to Friday’s important release of the US monthly jobs report, which might provide a fresh impetus and produce some meaningful trading opportunities.

Technical levels to watch