NZD/USD hits one-week highs above 0.6100
- Commodity currencies rise further versus the US dollar on the back of risk appetite.
- Powell and Mnuchin do not surprise markets, DXY trims losses but still faces pressure.
- NZD/USD rebounds from monthly lows, set to test May top.
The NZD/USD pair is rising on Tuesday for the second time in a row, supported by an improvement in risk appetite. The pair bottomed on Friday at 0.5920, the lowest level in three weeks, and recently hit at 0.6103, the highest in a week. It remains near the peak, still unable to make a run above 0.6100.
The technical tone for NZD/USD changed significantly and now indicators favor further gains, particularly if it holds above 0.6100. The next resistance might be seen at 0.6125, followed by 0.6155/60. The pair rose back above the 20-day moving average, currently at 0.6040 that now should act as a support.
Equity prices in Wall Street are posting mixed results, holding onto Monday’s gains. Hopes on a vaccine for the coronavirus, the reopening of many economies, and the European recovery fund helped market sentiment. Federal Reserve Chair Powell and US Treasury Secretary Mnuchin are testifying at a Senate committee.
The US dollar remains in negative territory but off lows. The DXY is falling 0.15% at 99.55 after reaching a one-week low at 99.22. The rebound was boosted by a rally in USD/JPY. The yen is among the worst performers amid rising US yields and higher equity prices.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
