NZ Dollar Advances Amid Rising Risk Appetite
The NZ dollar strengthened against its major rivals in the Asian
session on Wednesday, as the rollout of coronavirus vaccines and
the prospect of additional U.S. fiscal stimulus raised hopes of
Investors bet that a Democratic controlled U.S. Senate would
pursue larger relief measures to support the virus-hit economy.
Recent comments from Federal Reserve officials diminished
worries about the tapering on purchases of government and
On Tuesday, St. Louis President James Bullard and Boston Fed
chief Eric Rosengren said that the central bank is in no rush to
start winding down its bond-buying programme in the wake of the
economic fallout from the virus.
Oil prices rose amid a weak dollar and as API data showed a
larger-than-expected decline in U.S. crude inventories last
Investors focus on developments in Washington, where Democrats
will vote later today to impeach President Donald Trump over
protests in the U.S. Capitol.
The kiwi climbed to 1.0737 versus the aussie, after falling to
1.0761 at 7:30 pm ET. If the kiwi continues its rise, 1.04 is
possibly seen as its next resistance level.
The kiwi spiked up to a 2-day high of 1.6873 against the euro
and a 5-day high of 0.7240 against the greenback from Tuesday's
closing values of 1.6892 and 0.7212, respectively. The next
possible resistance for the kiwi is seen around 1.66 against the
euro and 0.70 against the greenback.
The NZ currency reached as high as 75.02 against the yen,
compared to yesterday's close of 74.84. If the kiwi continues its
rise, 76.00 is possibly seen as its next resistance level.
Looking ahead, Eurozone industrial production for November is
due in the European session.
U.S. CPI and monthly budget statement for December, as well as
Fed Beige book report are scheduled for release in the New York