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Kiwi extends gains versus US dollar during the American session.
- NZD/USD could post the highest daily close since mid-March.
The NZD/USD is rising for the third day in a row on the back of an improvement in risk sentiment. Among G10 currencies, the kiwi is outperforming. Recently the pair climbed to 0.6157, reaching the highest level in a week. It is hovering around 0.6140, consolidation gains and with a bullish bias.
A weaker US dollar has been the key driver of today’s price action. The greenback continues to slide as Wall Street resumes the upside. The Dow Jones is rising 1.60% and the Nasdaq 2.10%. Emerging market and commodity currencies area sharply higher, extending the weekly rally supported by risk appetite.
The kiwi rose across the board during the Asian session. Reserve Bank of New Zealand Governor Orr mentioned that negative rates are not on the agenda now, but could be an option “a lot later”.
NZD/USD near critical resistance
The pair peaked at 0.6157 and pulled back. The 0.6160/70 zone is a key resistance that if broken should clear the way to more gains. The next resistance might be seen at 0.6200 followed by 0.6225 (100-day SMA).
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