NZD/USD pushing against 0.6315 resistance area amid a positive market mood
- The kiwi appreciates for the third consecutive day to test 0.6315 resistance.
- Easing covid restrictions in China has boosted market sentiment.
- The US dollar remains soft on hopes that the Fed will ease its tightening pace.
The New Zealand Dollar is taking bids on Tuesday to extend its three-day rally from last week's lows.at 0.6230 to test Monday’s high at 0.6315. The pair appreciates 0.25% on the day to hit session highs at 0.6318 although, so far it seems unable to confirm above the mentioned o.6315.
The Kiwi remains bid, buoyed by the positive market sentiment
The upbeat market mood seen at the start of a very quiet post-Christmas week is underpinning New Zealand Dollar’s uptrend.
News that the Chinese National Health Commission is set to scrap the quarantine for inbound travelers has been welcomed by the markets, boosting sentiment-linked currencies like the Kiwi.
On the other hand, the sharper-than-expected decline in Chinese industrial profits which fell by 3.6% year-on-year in November, against previous estimations of a 3.0% drop, has tamed the appetite for risk.
On the other hand, the US dollar is showing a soft tone, weighed by macroeconomic data seen on Friday. The US Core PCE Prices Index, one of the Federal Reserve’s preferred inflation gauges, declined for the third consecutive month in November, suggesting that the peak of inflation might already be behind.
These figures, coupled with the stalled consumer spending data, are providing reasons to the Fed to moderate its tightening pace, ultimately adding negative pressure to the greenback.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
