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Kiwi dollar lowest close since 2009

NZD - New Zealand Dollar

The New Zealand dollar fell overnight to a decade low of 0.6088, the weakest close since 2009, after the Coronavirus was declared a pandemic and US equity markets plunged overnight. The New Zealand dollar continues to be hit hardest by the market’s risk-aversion and with the outbreak now being called a pandemic, fears of its impact on the global economy are rising. This is keeping the New Zealand dollar among the market’s least-appealing major currencies.

Looking ahead today in New Zealand and we will see the release of Business NZ Manufacturing Index and Food Price Index. From a technical perspective, the NZD/USD pair is currently trading at 0.6088. Subsequent support of note may exist at the intra-day low established around 0.6016.

Key Movers

Financial markets are in turmoil, as containment measures to stop the spread of Coronavirus look increasingly likely to send the global economy into a recession and potentially trigger a credit crisis. Trading was suspended again overnight as Wall Street has suffered its worst day since the stock market crashed on Black Monday in 1987. On Thursday, the S&P 500 closed down about 9.5 percent, its biggest daily drop in more than three decades. The decline has left stocks in the US firmly in a bear market — a term that signifies a decline of 20 percent from the most recent highs. European stocks tumbled 8 per cent, even after the European Central Bank pledged to buy more bonds and offer more help for the economy. Many analysts say markets will continue to swing sharply until the number of new infections stops accelerating.

Expected Ranges

NZD/USD: 0.5850 - 0.6250 ▼

NZD/AUD: 0.9450 - 0.9850 ▲

GBP/NZD: 2.0250 - 2.0650 ▼

NZD/EUR: 0.5250 - 0.5650 ▼

NZD/CAD: 0.8250 - 0.8650 ▲