The NZD/USD this Wednesday morning paid no attention to RBNZ Governor Orr’s downbeat comments even though the pair lost a few pips to 0.6971. Analysts are bullish on the pair due to Joe Biden’s shift in power.
The US dollar was down on Wednesday morning in Asia, after increasing confidence over the global economic recovery that saw investors turn towards riskier assets. The confidence was encouraged by the prospect of a Covid-19 vaccine becoming available soon and clarity over the incoming US presidential administration power shift saw the Dow Jones Industrial Average rose above 30,000 for the first time during the previous session.
Wall Street indexes like DJI30 and S&P 500 recently closed at the record highs by the end of Tuesday while the US 10-year Treasury yields also gained 2.6 basis points to 0.88% by press time. Asia Pacific shares were up on Wednesday.
The Kiwi has been on a steady bullish trend for more that 30 days. From the start of the week the pair has gained more than 75 pips even touching the 0.7000 level.
Considering the lack of major economic data, Kiwi traders may expand the recent bullish momentum slower than previously. Nevertheless, risk news can keep entertaining the market players.
With all moving averages pointing upwards, traders are expecting a retest of the 0.7000 resistance in the near future boosted by a correlation from the Australian currency. On the downside the support lines of 0.6950 and 0.6900 are vital, and lower at the 0.6850 level.
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