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FxWirePro: NZD/USD dives over 1.50%, global risk-off triggers sharp pullback

NZD/USD chart - Trading View NZD/USD dives over 1.50% on the day and was trading at 0.7025 at around 09:50 GMT. Weakening global risk sentiment triggered a sharp pullback in the equity markets and other risk assets. The …

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FxWirePro: NZD/USD dives over 1.50%, global risk-off triggers sharp pullback
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NZD/USD chart - Trading View 

NZD/USD dives over 1.50% on the day and was trading at 0.7025 at around 09:50 GMT.

Weakening global risk sentiment triggered a sharp pullback in the equity markets and other risk assets.

The pair opened with a bearish gap on the first day of a new trading week in reaction to fresh COVID-19 jitters.

Concerns over the coronavirus contagion have intensified after a new covid strain was found in the UK.

Fresh coronavirus jitters overshadowed the optimism over the long-awaited $900 billion US coronavirus aid package and an emergency use approval for Moderna's COVID-19 vaccine.

Risk-off flows boosted the US dollar's relative safe-haven status and further contributed to downside in the pair. 

Price action has slipped below 21-EMA and 200H MA, scope for further downside. 50-DMA is strong support at 0.6864. Breach below eyes daily cloud.
 

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