- NZD/USD gains 0.22% but is yet to beat resistance at 0.6670.
- The breakout may remain elusive due to risk-off moves in stocks.
- RBNZ’s Hawkesby says New Zealand’s economy needs continued support.
NZD/USD is trading in the green despite a weak tone in the equity markets. The pair needs to cross a newfound resistance of 0.6670 to put the bulls in a commanding position.
The Kiwi dollar is currently trading near 0.6660, representing a 0.22% gain on the day.
The immediate bias, however, remains neutral as the resistance at 0.6670 remains intact. That level has repeatedly proved a tough nut to crack over the past three days.
A convincing move above 0.6670 would revive the bullish view put forward by Friday’s 1.41% surge and shift the focus to resistance at 0.68.
That said, the bulls may have a tough time forcing a breakout above 0.6670, as the Asian stock markets are currently tracking the US equities lower. As such, the US dollar may draw haven demand.
Wall Street suffered losses on Tuesday as Johnson and Johnson’s decision to halt the coronavirus vaccine trials dented the risk sentiment. Also, deadlock in Washington over additional fiscal stimulus weighed on investor sentiment.
Besides, dovish Reserve Bank of New Zealand (RBNZ) expectations could keep the NZD buyers at bay. The central bank’s Assistant Governor Hawkesby was out on the wires a few minutes ago, stating that New Zealand’s economy requires continued policy support. The bank believes in going hard and moving early in delivering additional stimulus, the policymaker added.
Credit: FX Street