NZD/USD clings to modest gains above 0.5900, risk-tone remains lighter

• NZD/USD stays mildly positive, extends the latest risk reset.
• Speculations over the Saudi-Russia pact, downbeat US data seem the latest catalysts.
• Virus numbers remain horrible, the search for the cure is on progress.
• Aussie Retail Sales, China Caixin Services PMI can direct the Kiwi pair amid a lack of New Zealand data.

NZD/USD seesaws around 0.5920 during the Asian session on Friday. The pair earlier gained amid broad risk reset, mainly on expectations of a halt in oil’s carnage. Though, a lack of confirmation and prevalent coronavirus (COVID-19) pessimism keeps the kiwi traders look for additional catalysts.

Despite being defied following the earlier tweet, US President Donald Trump reiterates that Saudi Arabia and Russia have talked to him and suggested a production cut to stabilize the energy markets. Also recently affecting the risk-tone could be the S&P’s stable outlook and affirmation of AA+ rating.

The news earlier triggered the market’s risk-reset with the US 10-year Treasury yields bounding back beyond 0.61% from sub-0.58% while Wall Street benchmarks also flashed gains by the end of Thursday.

Elsewhere, virus data continues to remain disappointing with global figures rising one million marks and more than 50,000 deaths. The US Jobless Claims strengthened the fears with a surge to over six million applications for employment benefits.

Traders are currently searching for fresh clues amid a lack of major catalysts and hence may rely on Aussie Retail Sales and China’s Caixin Services PMI for intermediate direction. Even so, the major attention will be on virus headlines and the US economic calendar.

Technical analysis

Buyers will look for a clear break above the 21-day SMA level of 0.5985 to aim for 0.6000 and then challenge the weekly top surrounding 0.6065/70.