Asian stocks are trading higher following a late rebound in Wall Street, with major indices ending in green for the first time the last three trading sessions. Stocks ignored rising tensions between China and the USA over the handling of the coronavirus outbreak. Traders focus on the reopening of the economies as the coronavirus cases drop globally. aCrud oil price also rebounds as more countries open businesses.
RBA kept the interest rates unchanged at 0.25% as widely expected by markets. The main economic event of the day is the ISM non-manufacturing for April with expectations at 41, from 52.5 in March. The main event of the week will be on Friday the US non-farm payrolls with analysts expecting to fall by 22 million in April compared with a drop of 701,000 the previous month. The US unemployment rate will hit almost 16.3%, up from 4.4% in March.
The Hang Seng Index is 0.89% higher at 23,820. The Aussie ASX 200 index trading higher for the second day adding 1.45% at 5,396 after the Aussie Consumer confidence rose by 5.3% to 89.5 marking the fifth consecutive week of gains.
NZDUSD trades 0.15% at 0.6060 consolidating at the 50-day moving average after the recent pullback from monthly highs. ANZ Banking Group earlier today revised down the Fonterra 2020-21 milk price projection to NZD5.75/kg milk solids from NZD6.45/kg previous projection.
New Zealand reported zero coronavirus cases for the second day in a row, while Prime Minister is in discussions with Australia to restart travelling between the two countries. The Reserve bank of New Zealand (RBNZ) cut the interest rates to 0.25% in March and pledged to keep it at 0.25% for the upcoming months.
On the upside, immediate resistance for NZDUSD stands at 0.6076 the daily top. A break above would meet the next resistance at 0.6172 the high from April 30. The next hurdle for bulls stands at 0.6296 the 1000-day moving average.
On the other side, initial support stands at 0.6039 the daily low. If the selling pressure continues, the next support for NZDUSD will be met at 0.5989 the low from April 28. The next critical support area stands at 0.5908 the low from April 23.