NZD/USD bulls moved in during risk-on US session
|- NZD/USD corrects a portion of the US dollar's advance in risk-on markets.
- Markets will be on the watch for Fed speakers this week and ongoing USD strength risks.
NZD/USD is opening in early Asia almost 1% higher as the bulls step in to correct, in part, the dollar's advance as risk appetite improved.
On Wall Street, equities rebound and US bond yields were rising with a pull-back in the greenback cited as the catalysts for the moves.
''While the move was mostly USD-driven and it’s too soon to say whether it’s just a pull-back off highs (for the USD), NZD price action nonetheless looks a little more encouraging,'' analysts at ANZ Bank argued.
There was some back-peddling from Federal Reserve speakers in the US session with comments coming from members of the board, including comments from both St. Louis Fed President James Bullard and New York Fed Pres John Williams and Dallas Fed's Robert Kaplan.
-
NY Fed Pres Williams: Economy hasn't improved enough to pare policy stimulus
-
Fed's Kaplan: Policymakers reacting to dramatically improved economic outlook
Bullard said that he doesn't see how rates can get substantially higher than they are in the EU or Japan, but he did say that there is the possibility of the Fed hiking before tapering was complete.
With regards to that comment in particular, 'while technical, it was more hawkish and if that’s the tone we get for the remainder of the week, it’s hard to see the USD softening too much or US inflation expectations coming back a long way,'' the analysts at ANZ Bank argued.
The Fed chair Jerome Powell speaks before US lawmakers on Tuesday to give them an update on the Fed’s support for the economy through the pandemic.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.