NZD/USD is currently trading at 0.7200 were markets risen overnight with the S&P500 hitting an all-time high as Joe Biden was sworn in as the 46th US President.
The commodity pair also benefited when an upbeat Bank of Canada left rates on hold. The central bank hinted at a ongoing loose monetary policy during a tough period for the economy, but said with Covid-19 vaccines being distributed and significant fiscal stimulus working its way through, the outlook is positive.
The Bank of Canada admitted that the medium-term outlook is “now stronger and more secure than in the October projection, thanks to earlier-than-expected availability of vaccines and significant ongoing policy stimulus”.
In The Meantime, in the very short term, attention will be back on the Reserve Bank of New Zealand with the Consumer Price Index release tomorrow.
Further out, the Federal Reserve meeting next week will ”acknowledge the improved fiscal backdrop since the last meeting in mid-December,” analysts at ANZ Bank said.”But no change in guidance is expected as the economy navigates the current COVID-driven weakness.”
We remain bullish for today with the 0.7250 resistance level tested.
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