The Kiwi has flatlined in recent trade, after a few hours of low trading volumes amid a lack of US participants in the market on Monday, given the Presidents’ Day holiday. Generally, volumes should pick up a little now that New Zealand equity markets have opened and as more Asia flow comes in, but Chinese market participants are still away for Lunar New Year celebrations.
Aside the move in GBP, which saw solid gains of vaccine/re-opening optimism, the NZDUSD pair was unable to break above a key level of resistance in the form of the 26 January, 9, 11 and 15 of February highs around the 0.7250 area. The pair benefits at 0.72492 and the pair has since dropped back into the 0.7220s, where it still trades with very modest 0.1% or 10 pip gains on the day.
New Zealand Prime Minister Jacinda Ardern ordered the country’s biggest city Auckland into a snap lockdown for the first time in nearly six months on Sunday after three coronavirus cases emerged in the community.
The NZD did not seem to be particularly impacted by this latest lockdown news, which, given its short duration, ought not have too much of a negative economic impact. Eyes will of course remain on whether more locally transmitted cases are uncovered over the coming days, however, amid the risk this little outbreak to turn into something worse.
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