NZD / USD recovery stopped above 0.6900 and dips to 0.6840

• NZD / USD stops its eight-day rally at 0.6915 and falls back to 0.6840.
• Kiwifruit loses steam as market sentiment deteriorates.
• Below 0.6845, the NZD bullish momentum would decline – UOB.

The New Zealand dollar it stopped its impressive eight-day rally against the US dollar on Thursday. The pair has been unable to stay above 0.6900 and has returned to session lows at 0.6840.

Kiwi loses steam as market sentiment deteriorates

The NZD / USD bulls have surrendered after hitting a fresh 20-month high of 0.6915 in early trading Thursday and fell back during the European and US trading sessions with risk appetite waning and major stock indices on the down. low.

As enthusiasm for Pfizer’s promising COVID-19 vaccine results fades, the market has refocused on the rising coronavirus cases in the US and Europe, assuming the fact that the vaccine will not reach the target. early enough to avoid severe economic damage this winter.

Coronavirus fears combined with resurgent concerns about the direction of monetary policies by major central banks and uncertainty ahead of the US government transition have led investors to take a more cautious approach than it is hurting risk-sensitive currencies like the kiwi.

NZD / SD: Declining below 0.6845 would ease uptrend – UOB

The UOB currency analysis team warns that the NZD may have reached its target and that a clear decline below 0.6845 would confirm this: “While the rapid rise seems exaggerated, the strong bullish momentum suggests further strength in the NZD. However, the main resistance at 0.6940 is unlikely to enter the scene (0.6920 is already a strong level). On the downside, a breakout of 0.6845 (minor support is at 0.6865) would indicate that the current bullish pressure has eased. ”