FxWirePro: Kiwi slumps from 1-week peak amid renewed coronavirus fears
The New Zealand dollar declined, retreating from a 1-week peak hit in the previous session as the latest update on the spread of the virus stoked fears that the epidemic remains a potent threat to the global economic out…
The New Zealand dollar declined, retreating from a 1-week peak hit in the previous session as the latest update on the spread of the virus stoked fears that the epidemic remains a potent threat to the global economic outlook.
Moreover, comments from RBNZ Governor, Adrian Orr, stating that Coronavirus poses downside risks to the outlook and it will have an impact on monetary policy if outbreak lasts for a sustained period further dented the bid tone around the pair.
On Wednesday, the major rallied as high as 0.6487 after the Reserve Bank of New Zealand held rates at record lows, as expected and surprised by dropping its easing bias.
The Kiwi was trading 0.3 percent down at 0.6445, having hit a low of 0.6378 on Tuesday, its lowest level since November 15.
Technical indicators are turning bearish: RSI weak at 39.45 and MACD supports downside.
Immediate resistance is located at 0.6477, a break above could take it near 0.6499 (200-DMA).
On the downside, support is seen at 0.6421 (5-DMA), a break below could drag it till 0.6399.
