- NZD / USD touched its highest level since March 2019 above 0.6900.
- The US dollar index cuts daily losses at the beginning of the American session.
- Risk appetite flows continue to support the NZD on Wednesday.
The pair NZD / USD It touched its highest level since March 2019 at 0.6931 during the European session on Wednesday, as the optimistic market environment helped the risk-sensitive NZD gain traction against the USD. With the dollar finding some demand in the first hours of US trading, the pair fell slightly, but was up 0.4% on the day at 0.6915.
Eyes on Wall Street
The positive risk environment after Pfizer announced that its coronavirus vaccine candidate showed 95% effectiveness in the final efficacy analysis of the phase three trial became the main topic of the market on Wednesday.
Meanwhile, data released by the US Census Bureau showed October home starts increased 4.9% and building permits were unchanged. The initial market reaction sent S&P 500 futures lower from session highs and helped the dollar recover some of its daily losses.
For the time being, the US Dollar Index is virtually unchanged on a daily basis at 92.42 and S&P 500 futures are up 0.16%.
No further macroeconomic data will be released for the rest of the day and investors will closely follow Wall Street’s performance. If US stocks struggle to organize a convincing rally in the second half of the day, the NZD / USD could drop towards 0.6900.
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