Market Brief: Asian Markets Higher, NZDUSD at 11-Week Highs Testing the 200-Day SMA

Asian stocks are trading higher on Tuesday as traders focus on the full recovery from the coronavirus as global confirmed cases drop. Investors ignore the rising tensions between China and the USA on the new security law in Hong Kong. USA revoked the special trade privileges while China halted the soybean and pork purchases from the USA damaging the Phase One trade agreement between the two superpowers. President Donald Trump threatens that will deploy armed forces in many cities as the civil arrest continues for the sixth day, after the death of George Floyd in Minnesota.

Wall Street ended higher on Monday as the rebound from March lows continue. In Asia, the Nikkei 225 ended 1.19% higher at 22,3258. The Hang Seng Index is 0.61% higher at 23,869. The Shanghai Composite index is 0.16% higher at 2,920. The Singapore Straits Times index is 1.59% higher at 2,591. The ASX 200 is 0.05% higher at 5,822.

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NZDUSD At 11-Week Highs

NZDUSD retreat today after yesterday’s sharp gains as the rally in risky currencies continues amid the global recovery from the coronavirus crisis. The pair today stalled at the 200-day moving average (0.6312) as greenback gains some strength after the recent pressure as the risk appetite returns to markets. The technical outlook for NZDUSD is positive for the pair, but bulls need a convincing break above the 200-day moving average to initiate another leg higher.  

On the upside, the first resistance for NZDUSD stands at 0.6307 the daily top. A break above would meet the next resistance at 0.6339 the high from May 11. The next obstacle for bulls stands at 0.6361 the March 10 high. 

On the other side, immediate support stands at 0.6272 the daily low. If the selling pressure continues, the next support for NZDUSD will be met at 0.6190 the 100-day moving average. The next support area will be reached at 0.6154 the low from May 27. 

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