- The renewed selling bias around the USD helps the NZD / USD gain strong positive traction on Wednesday.
- Concerns about the increase in the number of COVID-19 cases in the US continue to weigh on the USD.
- A modest rally in US stock index futures boosts money flows into the NZD with the highest perceived risk.
The pair NZD / USD you are spreading your intraday earnings and has soared to the highest level since March 2019, around the 0.6925-30 region during the European session on Wednesday.
After an initial drop to the 0.6875 region, The pair has regained positive traction on Thursday and has built on its recent strong bullish move from levels below 0.6600, in monthly minimums. The rebound is due exclusively to the appearance of new sales around the US dollar.
Despite promising developments in coronavirus vaccine trials, Investors remain concerned about the possible economic consequences of the imposition of new restrictions in several US states., which in turn has been seen as a key factor that keeps USD bulls on the defensive.
The US dollar has also been affected by the continued decline in US Treasury yields This, along with a positive rally in US equity futures has further weighed on the safe-haven USD and it has provided an additional boost to the highest perceived risk currencies, including the NZD.
The positive intraday momentum has executed some short-term stop orders near the 0.6905-10 region. Thus, some continuation strength above the 0.6940 region, could point to testing the December 2018 highs near the 0.6970 level.
Market participants are now waiting for the release of US housing market data, with building permits and housing starts, to get some momentum. Apart from this, the developments around the coronavirus saga will influence the USD price dynamics and could generate some trading opportunities around the NZD / USD pair.
NZD / USD technical levels
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