Asian stocks managed to rebound today and finished higher as many central banks and governments move to ensure liquidity with extreme monetary and fiscal relief measures. The Bank of England cut interest rates down to 0.1% and also announced the increase of UK government and corporate bonds holdings by £200 billion.
The European Central Bank launched an emergency relief package up to €750bn to offset the impact of the coronavirus pandemic. ECB said that would do everything in its powers to support the euro in these extraordinary times.
The Singapore Straits times finished 1.75% higher at 2352. The Hang Seng Index is 4.34% higher at 22644, and the Shanghai Composite ended 1.61% higher at 2745. Aussie stocks also managed to rebound and closed up 0.70% at 4816.
In our forex calendar, we have the BoE Inflation Expectations and Public Sector Net Borrowing from the UK. In the U.S., we have the Existing Home Sales due at 14:00GMT. The Baker Hughes US Oil Rig Count will be released at 17:00GMT.
Read our Best Trading Ideas for 2020.
NZDUSD Sharply Higher As RBNZ Ensures Liquidity
NZDUSD runs an impressive rally today adding 3.49% at 0.5869 after the New Zealand Reserve Bank said that established a temporary US Dollar swap line with Fed to support provision of USD liquidity up to $30 bln. RBNZ added that is actively involved in financial markets to provide smooth market functioning amid the coronavirus outbreak crisis.
On the technical side, the picture is bearish despite today’s sharp rebound. Immediate resistance for the pair stands at 0.5882 the daily low. The next resistance area will be met at 0.5921 the high from yesterday’s trading session.
On the downside, initial support for NZDUSD will be met at 0.5607 the daily low. More bids might emerge at 0.5466 the low from yesterday’s trading session.
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