The NZDUSD was little changed as the market reacted to a 5.8 magnitude earthquake in New Zealand. The pair is trading at 0.6096, which is close to where it ended the week.
New Zealand confronts another crisis
New Zealand has been praised for how it responded to the coronavirus pandemic. The disease only infected only 1,500 people and killed just 20. That was a victory considering other countries reported worse numbers. Also, the country has not had any new infection in the past few weeks.
Now, the country is facing another crisis as a large 5.3 magnitude earthquake hit the North Island. Fortunately, there was no death reported from the quake and analysts don’t expect a tsunami to happen.
NZD/USD stable ahead of key economic data
This week, the NZDUSD pair will move in reaction to several information. Tomorrow, the statistics office will release the exports and imports data for April. Analysts expect these numbers to show a slight improvement. That is because the country started to ease movements in April, which could have contributed to some improvement in trade.
The trade numbers will be followed by the stability report that will be released by the central bank. In this report, the central bank explains the state of the economy and talks about the measures it is putting in place. In response to the coronavirus pandemic, the RBNZ has lowered interest rates and initiated its first quantitative easing ever. Some of its members have also talked about negative interest rates.
Finally, we will get the business confidence data from ANZ.
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NZDUSD technical outlook
The NZDUSD pair is trading at 0.6096. On the daily chart, the price is slightly above the 50-day and 100-day exponential moving average and is slightly above the 50-day exponential moving average. The price also appears to be forming an ascending triangle pattern. Therefore, I expect the bears to attempt to test the blue support level. But, they will need to move below the 50-day and 100-day EMA first.
On the flip side, a move above 0.6150 will invalidate this trend. This price is the important resistance level that is also above the 50% retracement level.
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