NZD/USD: New Zealand Holiday tests bulls within familiar territory near 0.7200

Having rise for four consecutive weeks, NZD/USD remains on the front foot around 0.7200 amid the initial Asian session on Monday. In doing so, the kiwi pair respects mildly positive risk barometers amid holidays at home.

S&P 500 Futures keep Friday’s upbeat performance while staying mildly bid around 4,170. Behind the positive moves are the hopes that the faster vaccinations in the West, as well as in Israel, will help drive the global economy of the coronavirus (COVID-19)-led pandemic. Although Asian economies still struggle with the deadly virus resurgence, the US, Saudi Arabia and Russia showed readiness to help India and keeps expectations high that the world will soon overcome the virus woes.

However, the Western leaders’ tussle with China and the Russia-Ukraine battle weigh on the market sentiment. While the US is up for gathering global support against China’s policy in Xinxiang, the European Union (EU) doesn’t like Beijing’s strict militaries in the South China Sea. Further, three defeats of Japan’s ruling party in the by-elections, as well as Brexit woes, are extra catalysts to test the risk-on mood.

Moving on, NZD/USD traders should keep their eyes on the covid updates and headlines concerning China ahead of the US trading session as off in Australia and New Zealand restrict the market moves ahead of the North American session.

It should be noted that the US Durable Goods Orders for March, expected +2.5% versus -1.2% becomes the key data of the day. Though, major attention will be given to Wednesday’s Fed Monetary Policy above all events of the week.

Technical analysis

NZD/USD keeps bounce off the key support around 0.7160-50, comprising 50-day and 100-day SMAs, which in turn backs the bulls targeting the monthly high near 0.7230.