- Kiwi gains momentum after data from China and elections in New Zealand.
- NZD / USD rises for the second day, rebounding from the 100-day average.
The NZD / USD is rising on Monday with a positive tone, although not yet fully recovered from the fall he had last Thursday. The apatite for risk and the electoral result of the elections in New Zealand are giving support to the kiwi, which is among the best performing currencies at the start of the week.
The NZD / USD price climbed to 0.6645 and is trading at 0.6635, rising for the second day in a row. The electoral triumph of Prime Minister Ahern in the New Zealand elections, which could end in a parliamentary majority, supported the kiwi in the Asian session. Then it was the weakness of the dollar that contributed to the pair reaching new highs.
The climate of rise in the bags after the data of China and before the expectation for a vaccine, it favored the good mood of investors and weakened the dollar. In the last hours this has moderated, pushing the NZD / USD momentum.
Technical overview
The NZD / USD is rebounding from the 100-day moving average which sits at 0.6580. A daily close clearly below that level would leave the weaker crossing pointing lower. The next support is at 0.6545.
In the opposite direction, the pair’s next strong resistance can be found around 0.6670. A confirmation on this level would leave the kiwi strengthened to extend the bullish journey.
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Credits: Forex Street
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