The risk-off tone in equities is likely weighing over NZD/USD.
Technical charts are reporting a death cross, a major bearish indicator.
NZD/USD is flashing red amid risk-off tone in Asian equities.
The currency pair is currently trading at 0.6315, representing a 0.30% loss on the day, having hit a high of 0.6359 in early Asia. Meanwhile, Japan’s Nikkei index and the Shanghai Composite index are down 1% and 0.7% respectively. South Korea’s Kospi is also flashing red, while shares in Hong Kong are flat-lined and those in Australia are reporting a 1.68% gain.
Asian equities are extending Monday’s slide, which was fueled by oil price slide and coronavirus fears and the risk-off tone is likely weighing over the New Zealand dollar. Traders, however, should note that the futures on the S&P 500 are currently reporting over 2% gains. As a result, the sentiment could turn pro-risk during the day ahead, helping the Kiwi pick up a bid.
China PPI deflation
China’s Producer Price Inflation (PPI) fell back into deflation in February on virus fears.=, the official data released at 01:30 GMT showed.
The inflation number came in at -0.4% versus expectations for -0.3% and may have added to bearish pressures around the NZD.
Death cross
The 50-day average is crossing over below the 200-day average. That death cross is widely considered a sign of a long-term bearish market. In reality, however, the death cross is based on backward-looking averages and lags prices.