- The NZD / USD is witnessing a sharp turn from the six-week highs amid resurgent demand for the USD.
- The tighter-than-expected run affects risk appetite sentiment and weighs even more on the NZD.
After good price movements in both directions during the Asian session on Wednesday, the NZD / USD pair now appears to have stabilized near the 0.6650 region.
The pair extended this week’s strong gains and spiked to six-week highs around the 0.6745 region during the early part of Wednesday’s trading action before witnessing a sharp intraday turn. The NZD / USD pair fell around 130 pips from daily highs in reaction to the victory of current President Donald Trump in the state of Florida, a battlefield.
The results of the US elections indicated that the race is closer than expected. In fact, the most recent count at the electoral college is now 233 for both Joe Biden and Donald Trump. Further, the announced delay in the results of the key states Wisconsin, Michigan and Pennsylvania has fueled uncertainty about the actual outcome and has dampened investors’ appetite for riskier assets.
This has benefited the safe haven US dollar and has sparked some aggressive selling around the NZD / USD pair, although bearish pressure has eased above the round level of 0.6600. For now, he appears to have broken two consecutive days of earnings, as the focus remains on political developments in the United States.
Credits: Forex Street
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