NZDUSD trades lower for the second consecutive day as the pair corrects from the recent six days rally, from multi-year lows at 0.5467. Buying interest resumed for the USD after the huge relief package by the U.S. administration and the stabilization in stock markets. The New Zealand Reserve Bank (RBNZ) announced the establishment of a temporary USD swap line with U.S. Federal Reserve to support the provision of USD liquidity up to $30 billion. RBNZ also said that it is actively involved in the financial markets and will use all tools available to provide smooth market functioning amid the coronavirus outbreak crisis.
On the data front the New Zealand Business Confidence came in at -63.5 below the expectations of -24.1 in March, the Activity Outlook came in at -26.7%, also below the forecasts of 7.3%. The Building Permits in New Zealand came in at 4.7%, topping the forecasts of 1% in February.
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NZDUSD Price Resistance and Support
NZDUSD is 1.05% lower at 0.5955 as the correction accelerates from 0.6050 mark. The technical picture is bearish despite the recent rebound, while today’s pullback keep the downward momentum alive.
On the downside, initial support will be met at 0.59466 the daily low. In case, the NZDUSD pair breaks below, the next support zone stands at 0.5909 the low from March 27th trading session. More bids would emerge at 0.5775 the low from March 26.
On the other side, the first hurdle for NZDUSD stands at 0.6038 the daily top. If the bulls break above then the next target would be at 0.606444 the high from yesterday’s trading session. More offers might emerge at 0.6100 the high from March 17.
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