NZDUSD pair remained upbeat in Friday session, recouping some of the losses accrued on Thursday as risk eversion took a toll of sentiments in the market. The dollar rebounded against other major currencies, as fears of a second wave of coronavirus infections, sent traders scampering for safety in Safe-Havens.
A strengthened dollar sent the NZD/USD to one-week lows with the pair shedding more than 0.5% in value. The sell-off came at the backdrop of an overstretched New Zeeland Dollar that has registered substantial gains against the dollar in recent trading sessions.
Even as the threat of coronavirus continues to fade away in New Zealand, the same cannot be said about the U.S. The U.S is staring at a second wave of infection, a development that has rattled the markets sending traders to safe-havens such as the dollar.
A strengthened dollar across the board is the immediate catalysts pushing the NZD/USD exchange rate lower. The dollar tends to strengthen in times of crisis such as example, the COVID-19 pandemic should see the pair edge lower, especially on infections showing no signs of slowing down after rising past the 2 million mark.