NZD / USD rises to new three-week highs, approaching 0.6700

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  • The NZD / USD pair gained traction early in the US session.
  • The US dollar index falls to the 93.30 area on Wednesday.
  • The major Wall Street indices post modest daily gains.

After fluctuating in a tight range near 0.6650 during the first half of the day, the pair NZD / USD gained traction in US business hours and rose to its highest level since Sept. 23 at 0.6682. At time of writing, the pair was up 0.47% on the day at 0.6679.

DXY goes down on Wednesday

Renewed USD weakness in the past few hours helped the NZD / USD pair gain bullish momentum. The US Dollar Index (DXY), which remained quiet near 93.50 during the European session, turned south and fell to a daily low of 93.25. At the moment, the DXY is down 0.25% on the day at 93.30.

In the absence of any major macroeconomic data releases, market sentiment appears to be affecting the USD market valuation. According to various news outlets, the Speaker of the United States House of Representatives, Nancy Pelosi, and the Secretary of the Treasury, Steven Mnuchin, are expected to continue the stimulus negotiations later in the day and this fact appears to be making it difficult for the USD meets demand.

Meanwhile, the major Wall Street indices are clinging to modest daily gains, suggesting that investors are not fleeing to safe havens yet.

During the Asian session on Thursday, a strong reaction to the Australian labor market report in AUD / USD could affect positively correlated NZD / USD movements.

Credits: Forex Street

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