- NZD/USD tracks equities higher, rises 0.65% in Asia.
- Risk assets rise on coronavirus vaccine optimism and ASEAN trade deal.
The NZD/USD pair jumped over 40 pips on Monday as the coronavirus vaccine optimism lifted the US stock futures and drew bids for the risk currencies such as the NZD.
The pair found buyers near 0.6840 and clocked session highs above 0.6880, as the futures tied to the S&P 500 advanced by 0.75% and major Asian equity indices like Nikkei and S&P/ASX 200 gained over 1%.
Traders bid up risk assets on expectations that drugmaker Moderna would announce positive results of its coronavirus vaccine this week. The US pharma giant Pfizer disclosed over 90% efficiency of its vaccine candidate last Monday, boosting risk appetite in the financial markets.
Besides, the news of the ASEAN trade deal likely added to the bullish tone around the NZD and other risk assets. Ten ASEAN nations: Vietnam, Thailand, the Philippines, Laos, Cambodia, Myanmar, Malaysia, Singapore, Indonesia, and Brunei, along with Australia, China, Japan, New Zealand, and South Korea entered into the world’s largest free-trade agreement over the weekend that is expected to accelerate the economic recovery from the coronavirus-induced slowdown.
The vaccine optimism and ASEAN trade deal, coupled with the upbeat China Industrial Production data overshadowed Axios’ report that Trump was planning a flurry of aggressive policy moves against China in the coming 10 weeks. Also, traders shrugged off the rising Coronavirus cases in Europe and the United States and new outbreaks in South Korea, Japan, and Australia.
Technical levels
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