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  • NZD capitalizes on risk flows in early American session.
  • US Dollar Index stays in the positive territory on Monday.
  • S&P 500 looks to open at new record highs.

The NZD/USD pair gained traction on Monday and rose to its highest level since March 2019 at 0.6851. As of writing, the pair was up 1.05% on a daily basis at 0.6842.

Risk-sensitive NZD soars on Pfizer news 

Risk flows started to dominate the financial markets on Monday after Pfizer reported that the coronavirus vaccine it’s developing with BioNTech was “more than 90%” effective in the latest trials. With the initial market reaction, US stock futures surged higher and the S&P 500 futures are currently gaining more than 4% on the day at 3,650, suggesting that the S&P 500 will open at fresh all-time highs. 

Meanwhile, the greenback is staying relatively resilient against its rivals supported by a 12% surge seen in the 10-year US Treasury bond yield. As of writing, the US Dollar Index was up 0.12% on the day at 92.35.

The US economic docket won’t be featuring any high-tier macroeconomic data releases on Monday and the market mood is likely to continue to impact major currency pairs’ movements. 

In the early trading hours of the Asian session, Electronic Card Retail Sales data will be released from New Zealand but are likely to be ignored by the market participants.

Technical levels to watch for