Bitcoin soars on coronavirus risks and upcoming halving
Bitcoin continued a rally that began in December last year. The cryptocurrency crossed the important level of $10,000 and touched an intraday high of $10,462. This was the highest level in five months. The currency has gained by more than 40% this year. It had the best January in seven years. Industry participants believe that investors are moving back to Bitcoin ahead of the halving event that will happen between May and June. Halving is a process where rewards for miners is halved. The rally is also down to the coronavirus is spreading. Many market participants have positioned Bitcoin as a safe-haven currency.
The New Zealand dollar rose today after the country’s central bank downplayed risks of the coronavirus. In the monetary policy statement, the bank said that some parts of the country’s economy were being affected. Still, the bank expects the overall impact to be relatively muted in the long term. The bank also said that unemployment rate remained at historic lows and that inflation was approaching the 2% target. As a result, the bank left interest rates unchanged at 1.0%. Before the rates decision, data from the country showed that credit card spending had risen by 4.2% while electronic card retail sales fell by -0.1%.
Global stocks rose today as markets pinned their hopes that coronavirus infections were slowing. This is after Hubei, the outbreak’s epicentre recorded its lowest level of overnight cases this month. In total, more than 1,100 people have died while more than 44k have been infected. Most of these infections and deaths are from China. European and American stocks are trading at record highs. Asian stocks, on the other hand, are slightly below their January highs.
The AUD/NZD pair has been on an upward trend since January 27. The pair has risen from a low of 1.0307 to a high of 1.0505. Today, the pair declined to a low of 1.0395. This was the lowest level since February 10. It is now trading between the 50% and 38.2% Fibonacci Retracement level. As the pair dropped, the 14-day and 28-day EMAs made a bearish crossover. The pair is now attempting to pare some of its earlier losses. There is a possibility that it will resume the downward trend on divergent monetary policies between RBNZ and RBA.
The AUD/USD pair rose to a high of 0.6750 as the market down-played down risks posed by the coronavirus. This week, the pair has risen from a low of 0.6667. The 14-day EMA has provided a good support. The RSI has risen from the oversold level of 19 to 70. If the pair continues to rise, the next level to watch will be the important resistance level of 0.6775.
The EUR/USD pair was unchanged today as the markets waited for Jerome Powell’s testimony. His testimony yesterday did not move the USD as was widely expected. The pair is trading at 1.0912, which is slightly above yesterday’s low of 1.0890. The price is slightly below the 14-day and 28-day exponential moving averages. The signal line of the MACD is at the neutral level. The pair may see an upward or downward breakout in the coming days.