NZD/USD bulls aim for 0.6500 as market optimism favors Antipodeans

NZD/USD rises to a three-day high of 0.6495 during the initial Asian session on Tuesday. The kiwi pair’s latest run-up from 0.6460 enables it to print a three-day winning streak amid broad risk-on sentiment. While the recently released New Zealand data and updates from Beijing challenge the pair’s upside momentum, buyers cheer the Fed’s support to markets and hopes of the US-China talks.

New Zealand’s Westpac Consumer Survey for the second quarter (Q2) recently slipped below 107.90 forecast to 97.20. Though, markets showed a little reaction to the news considering the availability of the monthly figures from the same genre.

In doing so, the quote seems to cheer the US Federal Reserve’s efforts to infuse the market’s liquidity via corporate bond purchases and lending helps to non-profit organizations. Additionally, talks surrounding the likely US-China talks in Hawaii as well as expectations of a V-shaped recovery in 2021 offer extra boost to the current risk-on mood.

Though, Beijing’s risk warnings and the US Food and Drug Administration’s (FDA) comments about the much-championed coronavirus (COVID-19) drug Remdesivir still stand on the negative side to challenge the bulls.

It should also be noted that the market’s risk-tone remains positive with the S&P 500 Futures printing mild gains around 3,070 by the press time.

Looking forward, traders might keep eyes on the virus updates, as well as the headlines concerning the Sino-American relations, for immediate impulse. Additionally, the US Retail Sales and testimony by the Federal Reserve Chairman Jerome Powell could also offer directions to the quote.

Technical analysis

Buyers are waiting for a clear break above 0.6500 to challenge the monthly top near 0.6585. On the downside, Monday’s bottom near 0.6380 and 200-day SMA around 0.6320 become the near-term key supports.