- NZD/USD remains firm around the monthly high.
- The kiwi pair pays a little heed to mixed data at home amid broad US dollar weakness.
- US President Donald Trump said that some states can reopen almost immediately.
- Virus headlines, US data will offer fresh direction.
Having surged to the highest since mid-March, NZD/USD seesaws around 0.6105/10 during the early Asian session on Wednesday. In doing so, the kiwi pair paid a little heed to the mixed data from home while cheering the broad US dollar weakness and risk-on sentiment.
New Zealand’s March month Food Price Index and REINZ House Price Index recently registered mixed moves as the former rose beyond 0.0% forecast and prior to 0.7% but the later slipped from 3.1% to 0.3%.
Even so, the kiwi pair ticked up from 0.6100 to 0.6110 after the data as US President Donald Trump rekindled hopes of the restart of the world’s largest economy after the coronavirus (COVID-19) pushed it to lockdown. During his regular task force briefings, the Republican leader mentioned that some of the states can reopen immediately while also expecting the stocks to top records soon.
As a result, the already strong risk-on momentum gained additional strength and helped the commodity-linked currencies like the New Zealand dollar.
The markets have earlier witnessed broad US dollar weakness amid upbeat trade sentiment on the hopes of the economic re-start while mostly ignoring the International Monetary Fund’s (IMF) downgrade of global GDP forecast, to -3.0% for 2020.
Although the economic calendar is light in Asia, virus updates can keep the traders entertained ahead of the busy docket in the US session.
Technical analysis
50-day SMA near 0.6150 remains as the key near-term upside barrier ahead of the February month low, close to 0.6190. Meanwhile, sellers will look for entry below the four-week-old rising trend line, currently around 0.6065.
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