The NZD / USD was up for the third consecutive day thanks to an improvement in the feeling of risk. Among the G10 currencies, the kiwi outperforms. The pair recently climbed to 0.6157, reaching the highest level in a week. It hovers around 0.6140, with consolidation gains and a bullish bias.
A weaker US dollar has been the main driver of today’s price action. The greenback continues to slide as Wall Street continues to rise. The Dow Jones rose by 1.60% and the Nasdaq by 2.10%. Emerging markets and commodity currencies rose sharply, extending the weekly rally supported by risk appetite.
The kiwi rose at all levels during the Asian session. The Governor of the Reserve Bank of New Zealand, Orr, said that negative rates are not on the agenda at present, but may be an option “much later”.
NZD / USD near critical resistance
The pair peaked at 0.6157 and fell. The 0.6160 / 70 area is a key resistance which, if broken, should pave the way for more gains. The next resistance could be seen at 0.6200, followed by 0.6225 (100 day SMA).