NZD/USD consolidates recent gains around 0.7100 as markets remain silent

• NZD/USD refreshes intraday top after nearly a 15-pip gap down.
• Risks dwindle as US President Trump refrains from signing covid aid package, virus fears.
• New Zealand banks are off due to Boxing Day, risk catalysts can offer intermediate moves.

NZD/USD aims to fill the downside gap on the week’s start while rising to 0.7112 amid the early Asian trading on Monday. Although it’s a bank holiday in New Zealand, the pair traders retrace Friday’s gains amid fresh challenges to the US coronavirus (COVID-19) bill. Also challenging the bulls are the latest virus updates and vaccine news.

US President Donald Trump refrain from signing the much-awaited stimulus while eying the $2000 paycheck amount versus $600 agreed by the Congress. Although Capitol Hill is up for inflating the relief figure to avoid a government shutdown after Tuesday, Trump’s ability to veto the decision keeps market players uneasy amid the holiday season.

Additionally, fears that the covid numbers will jump amid the year-end celebrations, as cited by US Health Official Dr. Anthony Fauci, joins the delaying of virus vaccination in some German cities to probe the risks.

On the contrary, an update from AstraZeneca CEO Pascal Soriot that their covid vaccine is effective against new strain joins Brexit deal passage to favor the risks.

As the recent shift in the market’s mood, coupled with the sell the fact move post-Brexit deal announcement, challenge the NZD/USD bulls, traders will keep their eyes on the US stimulus headlines, coupled with virus and vaccine updates, for fresh impulse. However, a light calendar can restrict market moves and signal a few gaps here and there.

Technical analysis

A short-term symmetrical triangle, currently between 0.7115 and 0.7080, restricts the NZD/USD moves near the highest since April 2018.