- The NZD / USD went from trading highs in one month to lows in five days in hours.
- The dollar appreciates throughout the market in a climate of risk aversion.
Fears about the advance of coronarivus cases in various regions of the world, with the epicenter in Europe, triggered a stock market crash pushing NZD / USD down. The pair, which reached a month-high yesterday at 0.6724, has just dropped to 0.6656, the lowest in five days.
The pair remains in the area of the lows under pressure due to an advance of the dollar in the market. The NZD / USD is near the 0.6650 area, which is a relevant support. Below the pressures could intensify exposing 0.6620.
Markets in Europe are falling sharply on fears of the economic impact of more restrictions on activities due to the increase in cases of coronavirus.
The dollar index (DXY) rises for the third day in a row, but on Wednesday it does so at a faster pace. It is in the 93.50 area, at a high in more than a week. The main European stock indices fall between 1.5% and 3.5%.
The economic data to be published today is not expected to have an impact on the market. Traders will continue to focus on what happens on Wall Street.
Credits: Forex Street
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