Global stocks fall as US coronavirus cases hit record highs
The New Zealand dollar was little changed after the statistics office released May trade numbers. The data showed that the country’s exports increased from the previous $5.29 billion to $5.39 billion. In the same month, imports rose from the previous $3.95 billion to $4.14 billion leading to a trade surplus of more than $1.2 billion. These numbers provided further evidence that the country’s economy was starting to rebound. The data came a day after New Zealand’s central bank delivered its dovish interest rate decision.
American and Asian stocks declined sharply as traders started to worry about the rising number of coronavirus cases in the United States. According to health officials, the number of confirmed cases in seven states rose to the highest level on record. The national tally rose by more than 38,000, which was higher than the 36,000 recorded the previous day. Investors are worried that the new surge in cases could jump as more states reopen. Also, they are worried that the government could be forced to issue more stay at home orders to halt the spread.
Later today, we will receive the interest rate decision from Turkey. Most analysts expect the central bank to lower interest rates from the previous 8.25% to 8.0% as the bank attempts to cushion the economy. This will be the tenth-rate cut this year. From the United States, we will receive the final reading of Q1 economic data. Analysts expect the number to show that the economy dropped by 5.0% in the quarter. We will also receive durable goods orders numbers. Finally, we will receive the interest rate decision from Mexico.
The EUR/USD pair declined slightly in reaction to the rising cases in the United States. The pair is now trading at 1.1243, which is lower than this week’s high of 1.1390. On the four-hour chart, the price is inches below the 50-day and 100-day exponential moving averages while the signal and histogram of the MACD has made a bearish crossover. The RSI has also been falling, which means that the pair may continue declining.
The NZD/USD pair declined to an intraday low of 0.6410. On the hourly chart, the price is slightly above the 14-day and 28-day triple exponential moving averages. The two appear to be forming a bullish crossover. Also, the Average Directional Movement Index (ADX) has been falling and the price is slightly below the 61.8% Fibonacci retracement level. This means that the price is likely to move higher as traders attempt to test the 0.6450 resistance.
The XBR/USD pair declined in overnight trading as traders reacted to the rising coronavirus cases and higher inventory data. The pair is trading at 40.30, which is below this week’s high of 43.26. On the daily chart, the price moved below the ascending white trendline while the RSI has been falling. The price is also slightly above the 38.2% Fibonacci retracement level. Therefore, the pair may continue falling as bears attempt to move below the support at 40.00.