- The NZD / USD is consolidating just below the 0.7100 level ahead of the Q3 current account numbers.
- The NZD has benefited from a broad wave of risk based on stimulus hopes that undermined demand for USD.
He NZD / USD it has had a solid performance so far this Tuesday, and is currently trading just south of the 0.7100 level. Currently, the pair is trading with gains of around 20 pips or just under 0.3% on the day.
The NZD increased along with other risk assets
It has been a risky day, with gains in stocks such as the US (S&P 500 is more than 1% higher) and crude oil markets (WTI is also trading 1% higher) driven in the hope that US lawmakers will agree to a deal on more Covid-19 in crucial talks that are scheduled to begin at 9:00 PM GMT.
For the moment, currency markets are enjoying risk appetite, the USD is generally lower, with the dollar index (DXY) back below 90.50, so the NZD / USD has boosted again around 0.7100.
However, NZD traders seem a bit tentative to test the 0.7100 level, perhaps amid some caution ahead of New Zealand’s Q3 current account data at 21:45 GMT. Markets expect current account data to show that the economy is borrowing NZ 3.65 billion more than it borrowed to finance domestic consumption in the third quarter of the year. However, updates to the US fiscal stimulus are likely to remain in the driver’s seat for the pair.
Technical levels
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