reasons;
1.usd index cot reports shows an increase in traders long positions signifying strengthening of The dollar. however NZD cot indicated a balance between sellers and buyers
2. New Zealand’s economy contracted 1.6 percent on quarter in the three months to March 2020 compared to market expectations of a 1 percent contraction, shrinking the most in 19 years.
3. New Zealand announced 1 new case of the virus on Thursday, while United States added 27924
4.New Zealand’s current account surplus widened to NZD 1.56 billion in the first quarter of 2020 from NZD 0.72 billion in the corresponding period of the previous year and compared with market expectations of a NZD 1.48 billion surplus. It was the largest current account surplus since the third quarter of 2016, as the goods surplus increased to NZD 0.97 billion from NZD 0.21 billion a year ago. Also, the primary income gap decreased to NZD 2.21 billion from NZD 2.38 billion.
5.data shows USA top consumers have cut there spending by 36% while low level have cut by 20%..Showing less money in flow in the economy hence increase in the USD buying power..
conclusion..NZD economy is experiencing a better wave than USA..This signifying an increase in inflation in NZD making its currency have a lower purchasing power.While USD having a decrease in deflation thus having a higher purchasing power.
technicals;
NZDUSD is at the weekly downtrend level.
1.usd index cot reports shows an increase in traders long positions signifying strengthening of The dollar. however NZD cot indicated a balance between sellers and buyers
2. New Zealand’s economy contracted 1.6 percent on quarter in the three months to March 2020 compared to market expectations of a 1 percent contraction, shrinking the most in 19 years.
3. New Zealand announced 1 new case of the virus on Thursday, while United States added 27924
4.New Zealand’s current account surplus widened to NZD 1.56 billion in the first quarter of 2020 from NZD 0.72 billion in the corresponding period of the previous year and compared with market expectations of a NZD 1.48 billion surplus. It was the largest current account surplus since the third quarter of 2016, as the goods surplus increased to NZD 0.97 billion from NZD 0.21 billion a year ago. Also, the primary income gap decreased to NZD 2.21 billion from NZD 2.38 billion.
5.data shows USA top consumers have cut there spending by 36% while low level have cut by 20%..Showing less money in flow in the economy hence increase in the USD buying power..
conclusion..NZD economy is experiencing a better wave than USA..This signifying an increase in inflation in NZD making its currency have a lower purchasing power.While USD having a decrease in deflation thus having a higher purchasing power.
technicals;
NZDUSD is at the weekly downtrend level.
Comment:
zone reached sell order activated