- The NZD / USD has caught some aggressive buying on the first day of the week amid the prevailing sell bias in the USD.
- Vaccine optimism continues to support risk sentiment and weighs on the safe-haven USD.
- Sustained force above the 0.7250 level should pave the way for some continuation force.
The pair NZD / USD has reached new daily highs at the start of the European session on Monday, with the bulls making a new attempt to take advantage of the momentum above the 0.7250 region.
The pair has gained strong positive traction on the first day of a new trading week and has rebounded further from the week-long lows, around the 0.7175 region touched on Friday. The prevailing risk appetite sentiment has weighed on the safe-haven US dollar and it has been seen as a key factor driving the NZD / USD pair higher.
Global risk sentiment has remained backed by progress in coronavirus vaccine deployment. Apart from this, the expectationsstrong statements of a massive US fiscal spending plan. they have fueled hopes for a strong global economic recovery and increased investor confidence.
Meanwhile, the likelihood of US President Joe Biden’s proposed $ 1.9 trillion COVID-19 stimulus package passing has pushed the benchmark 10-year bond yield beyond 1.20%. This marks the highest levels since February 2020, although it has not provided any respite to the USD or capped the NZD / USD pair.
From a technical perspective, a sustained force above the strong horizontal resistance at 0.7250 will be seen as a further trigger for the bulls. This, in turn, will set the stage for a further short-term upward move towards the 0.7300 round level amid the absence of relevant economic releases in the market.
NZD / USD technical levels
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