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  • NZD/USD rallies to levels right below two-month highs at 0.6175.
  • The kiwi appreciates 3.5% over the last three days, buoyed by risk appetite.
  • RBNZ Governor, Andrew Orr, backtracks on negative interest rates and strengthens the NZD.

New Zealand’s dollar remains trading on a bid tone on Wednesday after having appreciated almost 3.5% over the last three days. The kiwi has surged from 0.5920 lows on Monday to levels past 0.6100 to consolidate right below two-month highs at 0.6175 buoyed by the positive market sentiment.

 

The kiwi rallies as the USD falters on risk appetite

The kiwi has been boosted by a favourable market sentiment over the last three days. Investors hopes of a global economic recovery as the main economies start lifting COVID-19 restrictions have boosted risk appetite, pushing stock markets higher and weighing on safe havens like the US dollar.

Furthermore, the comments by Reserve Bank of New Zealand Governor, Adrian Orr, backtracking on the idea of negative rates, a possibility he suggested just some days ago, has increased buying pressure on the NZD.

 

NZD/USD right below 0.6175 resistance level

The pair is now just a handful of pips below 0.6175 resistance level (April 30 high). If it makes it above here, the pair might aim towards the 100-day SMA, now at 0.6225, and then to the 200-day SMA, at 0.6320 area.