Market Brief: Asian Stocks Higher NZDUSD Hit Two-Week Lows

Asian stocks finished higher as the crude oil price rebounds and U.S. senate approve another relief package up to 500 billion to support the economy. Investors will focus today on the U.S. initial jobless claims. The expectations are for reading around 4.20 million below the previous week of 5.24 million. Last four weeks, about 22 million signed up for unemployment benefits.

Investors will also follow the European Council meeting today, where the discussion will be on a European Recovery Fund. The commission would propose a €2.2 trillion plan that would use the 7-year multi-annual budget with a €300bn recovery fund included.

Nikkei 225 finished 1.52% higher at 19,429. The Singapore Straits Times is 0.10% higher at 2,552. The Shanghai Composite is 0.19% lower at 2,838, while the Hang Seng Index is 0.41% higher at 23,991. The Aussie ASX 200 index ended flat for the second day at 5,217.

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NZDUSD At Two Week Lows

NZDUSD adds 0.17% at 0.5963 after New Zealand’s Prime Minister Jacinda Ardern said that the government is looking at all options to stimulate the NZ economy. The governor of the RBNZ said on Thursday that negative interest rates are not off the table in its battle against impact of the coronavirus outbreak. The Reserve bank cut its official cash rate to 0.25% in March and pledged to keep it at 0.25% for at least 12 months.

On the upside, first resistance for NZDUSD stands at 0.5996 the daily high. A break above would meet the next resistance at 0.6046 the high from April 21. The next hurdle for bulls stands at 0.6094 the 50-day moving average.

On the flip side, immediate support stands at 0.5910 the daily low. If the selling pressure continues, the next support for NZDUSD will be met at 0.5855 the low from April 6. The next support area is seen at 0.5779 the low from March 26.

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