NZD/USD registers decisive daily gains near 0.6150 on recovering sentiment
- Major European equity indexes stage a strong rebound on Friday.
- US Dollar Index posts modest gains above 97.50.
- Business NZ PMI in New Zealand jumped to 53.2 in February.
After erasing 150 pips on intense flight-to-safety and broad-based USD strength on Thursday, the NZD/USD pair gained traction on Friday and was last seen trading at 0.6153, adding 1.1% on a daily basis.
Relief rally on Friday
Investors seem to be finally breathing a sigh of relief with major central banks and economies taking decisive actions to help the global economy stay resilient in the face of the coronavirus outbreak. Reflecting the recovering market sentiment, major European stock indexes are up between 3.4% and 4.6% on Friday and the 10-year US Treasury bond yield is adding nearly 7%.
Additionally, the upbeat data from New Zealand provided a boost to the NZD as well. The NZ Business PMI in February jumped to 53.2 in February from 49.8 in January to reflect an expansion in the economic activity at a robust pace. This reading came in better than the market expectation of 50.3 as well.
In the second half of the day, the US economic docket will feature the Import Price Index, the Export Price Index and the UoM Consumer Confidence Index data. However, investors are likely to remain focused on the markets' risk perception and Wall Street's performance ahead of the weekend.
Technical levels to watch for