- Commodity currencies continue to climb against the US dollar due to risk appetite.
- Powell and Mnuchin do not surprise the markets, DXY reduces losses but still faces pressures.
- The NZD / USD rebounds from monthly lows, should test the May peak.
The NZD / USD pair increased Tuesday for the second consecutive time, supported by an improvement in risk appetite. The pair bottomed at 0.5920 on Friday, the lowest level in three weeks, and recently hit 0.6103, the highest in a week. He remains close to the summit, still unable to exceed 0.6100.
The technical tone of the NZD / USD has changed significantly and the indicators are now favoring further gains, especially if it stays above 0.6100. The next resistance could be observed at 0.6125, followed by 0.6155 / 60. The pair has risen above the 20-day moving average, currently at 0.6040 which should now support.
Stock prices on Wall Street show mixed results, keeping Monday’s gains. The hope of a vaccine against the coronavirus, the reopening of many economies and the European stimulus fund have contributed to the confidence of the market. Federal Reserve Chairman Powell and United States Secretary of the Treasury Mnuchin testify before a Senate committee.
The US dollar remains in negative territory but in decline. The DXY drops 0.15% to 99.55 after hitting a week-long low of 99.22. The rebound was stimulated by a rally in USD / JPY. The yen is among the worst performers against a backdrop of rising US yields and higher stock prices.