NZD/USD drops from monthly top to sub-0.6100 amid Easter holiday in New Zealand

• NZD/USD witnesses fresh downside pressure as risk-tone gets heavy.
• Coronavirus keeps weighing on the market’s trading sentiment.
• Easter Monday holiday restricts major moves.

NZD/USD steps back from four-week high to currently around 0.6075, down 0.11%, during the Asian session on Monday. Although a lack of major trading activity, due to the Easter Monday holiday, might have curbed the pair’s moves, the latest declines could have taken clues from the coronavirus (COVID-19) outbreak.

In addition to infecting over 1.8 million people globally, coupled with more than 114,000 deaths, the pandemic recently pushed the US to become the global hotspot with more than 20,000 deaths and above 530,000 cases.

Identifying the worries concerning the epidemic, the Minneapolis Fed President Neel Kashkari recently cited ‘long, hard road’ to recover from coronavirus.

While the widespread contagion in the world’s largest economy is fearing the global traders, their rush to risk-safety helped the US dollar to recover some of its latest losses.

Also portraying the risk-tone are the US stock futures, namely the futures linked to S&P 500 and DJI30, which are more than 1.0% down by the press time.

Even if the virus fears could keep exerting downside pressure on the pair, holidays in major countries will restrict the market’s response to the updates.

Technical analysis

Other than the 50-day SMA level of 0.5920, February month low near 0.6190 also adds resistance to the pair. However, the buyers can keep being hopeful unless witnessing a daily closing below a 21-day SMA level of 0.5920.