NZD/USD advances to fresh daily highs near 0.6570 on risk flows

NZD/USD pushes higher after testing 0.6500 on Tuesday.
US Dollar Index drops below 96.00 amid positive market sentiment.
Industrial Production data will be featured in the US economic docket.

Eren Sengezer FXStreet

The NZD/USD pair dropped to 0.6500 on Tuesday but closed the day flat at 0.6540. With risk-on flows starting to dominate the financial markets on Wednesday, the pair gained traction and rose to a daily high of 0.6572. As of writing, NZD/USD was trading a couple of pips below that level, gaining 0.47% on a daily basis.

Upbeat mood weighs on USD

In the absence of significant macroeconomic data releases on Wednesday, risk perception remains as the primary driver of currencies' performance. Earlier in the day, reports showed that Moderna's coronavirus vaccine candidate showed promising results. Additionally, ITV's political editor Robert Peston said Oxford's COVID-19 vaccine was generating "the kind of antibody and T-cell (killer cell) response that the researchers would hope to see."

Boosted by these developments, the risk-sensitive NZD is gathering strength against its rivals. On the other hand, the greenback continues to lose interest as a safe-haven with the US Dollar Index slumping to fresh five-week lows below 96.00.

In the second half of the day, Industrial Production and NY Empire State Manufacturing data will be featured in the US economic docket. More importantly, investors will keep a close eye on Wall Street's performance. At the moment, the S&P 500 futures are up 1.1% on the day.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6571
Today Daily Change	0.0040
Today Daily Change %	0.61
Today daily open	0.6531

Trends
Daily SMA20	0.649
Daily SMA50	0.6339
Daily SMA100	0.6193
Daily SMA200	0.6339

Levels
Previous Daily High	0.6545
Previous Daily Low	0.6502
Previous Weekly High	0.6601
Previous Weekly Low	0.6519
Previous Monthly High	0.6585
Previous Monthly Low	0.6186
Daily Fibonacci 38.2%	0.6518
Daily Fibonacci 61.8%	0.6529
Daily Pivot Point S1	0.6507
Daily Pivot Point S2	0.6483
Daily Pivot Point S3	0.6464
Daily Pivot Point R1	0.655
Daily Pivot Point R2	0.6569
Daily Pivot Point R3	0.6593

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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