- NZD/USD rally to levels just below two-month high 0.6175.
- The kiwi appreciated 3.5% over the past three days, supported by risk appetite.
- Governor of the RBNZ, Andrew Orr, back on the negative interest rates and strengthens the FAMILY.
The New Zealand dollar remains trading on a bid tone on Tuesday, having appreciated almost 3.5% in the last three days. The kiwi has jumped, from 0.5920 hollow, Monday, at the levels to adapt to 0.6100 to consolidate just below two-month high to 0.6175, buoyed by the positive market sentiment.
The kiwi rally as the USD falters on risk appetite
The kiwi has been strengthened by a favourable market sentiment on the last three days. The investor hopes of a global economic recovery, as the major economies start to raise COVID-19 restrictions have stimulated the appetite for risk, pushing equity markets higher and weighed on safe-haven securities like the U.S. dollar.
In addition, the comments of the Reserve Bank of New Zealand Governor, Adrian Orr, to return to the idea of negative rates, a possibility it has suggested just a few days ago, has increased the buying pressure on the NZD.
The NZD/USD is at the bottom right, 0.6175, and resistance level
The pair is now just a handful, or pips below 0.6175 resistance level (30 apr high). If he makes it to the top, the pair could be to strive towards the 100-day SMA, now at 0.6225, and then 200-day SMA at 0.6320 area.