NZD/USD has gained over 7% since November. The pair climbed to as high
as 0.7104 in early December, a record high ever reached in the past 20
months. However, NZD could find pressure from recent market
uncertainties.To get more news about
WikiFX, you can visit wikifx official website.
NZD/USD has registered its fifth week of gains in a row since
November, attributed to the weak dollar. Besides, the roll-out plan of
the Covid-19 vaccine has lifted markets' expectations on the global
economic recovery, strongly supporting NZD.
New Zealand Finance Minister Grant Robertson has asked the central
bank to consider factoring house prices as part of its monetary policy
remit, boosting the local dollar on market bets of less stimulus.
However, a rapidly rising exchange rate seems to encumber the recovery
of export-oriented New Zealand.
More importantly, uncertainties about the US stimulus and Brexit are
still looming over the market, amid which negative news will pull back
the DXY and drag down the risk-sensitive NZD. A breach below 0.7000 is
on the cards for the pair, with 0.6940 or even 0.6900 the next barriers
to test.
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