NZD/USD hits one-week highs above 0.6100
- Commodity currencies rise further versus the US dollar on the back of risk appetite.
- Powell and Mnuchin do not surprise markets, DXY trims losses but still faces pressure.
- NZD/USD rebounds from monthly lows, set to test May top.
The NZD/USD pair is rising on Tuesday for the second time in a row, supported by an improvement in risk appetite. The pair bottomed on Friday at 0.5920, the lowest level in three weeks, and recently hit at 0.6103, the highest in a week. It remains near the peak, still unable to make a run above 0.6100.
The technical tone for NZD/USD changed significantly and now indicators favor further gains, particularly if it holds above 0.6100. The next resistance might be seen at 0.6125, followed by 0.6155/60. The pair rose back above the 20-day moving average, currently at 0.6040 that now should act as a support.
Equity prices in Wall Street are posting mixed results, holding onto Monday’s gains. Hopes on a vaccine for the coronavirus, the reopening of many economies, and the European recovery fund helped market sentiment. Federal Reserve Chair Powell and US Treasury Secretary Mnuchin are testifying at a Senate committee.
The US dollar remains in negative territory but off lows. The DXY is falling 0.15% at 99.55 after reaching a one-week low at 99.22. The rebound was boosted by a rally in USD/JPY. The yen is among the worst performers amid rising US yields and higher equity prices.
Technical levels