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The NZD/USD pair has pulled back from multi-month highs, tracking the decline in the US stock futures. So far, however, Kiwi’s downside has been minimal. 

The currency pair is trading largely unchanged on the day near 0.7250, having printed a high of 0.7262 early today. That was the highest level since April 2018. 

The futures tied to the S&P 500 are now trading 0.30% lower on the day. The decline has come, with both Democratic candidates in Georgia’s Senate runoff pulling into the lead. That’s somewhat surprising, given that a Democrat-controlled Senate is expected to deliver a more significant fiscal stimulus. 

The decline in futures indicates that investors are concerned about what a Blue Sweep could mean for tech companies moving forward. 

Should the losses deepen, the Kiwi would most likely see a deeper pullback. China’s data released a few minutes ago favors losses in the NZD and other commodity-sensitive currencies. China’s Caixin Services PMI fell to 56.3 in December from November’s 57.8.

Technical levels