- NZD/USD rises to the highest since January 29, prints six-day winning streak.
- Hopes of faster economic recovery propel the quote off-late.
- New Zealand’s Q1 Volume of All Buildings dropped -5.7% versus -0.8% prior.
- A light calendar keeps risk catalysts on the watch.
NZD/USD stays on the bid for the sixth consecutive day while rising 0.6535, highest since January 29, amid the early Asian session on Monday. Alike all other Antipodeans, the kiwi pair also benefits from the market’s risk-on sentiment. Friday’s upbeat employment data from the US and Canada seem to have fuelled the hopes of faster economic recovery, which in turn helped the traders to ignore the on-going tussle between the US and China.
The US Nonfarm Payrolls (NFP) grew beyond -8,000K forecast to a surprise increase of 2,509K. Further, the US Unemployment Rate also weakened from 19.8% expected to 13.3%. On the other hand, Employment in Canada rose by 290,000 in May versus forecast for a decline of 500,000.
In addition to the upbeat jobs report from the key global economies, receding protests in the US as well as increased hopes of the coronavirus (COVID-19) cure also favor the market’s optimism. AstraZeneca and Gilead, the key drug researchers for the pandemic are anticipated to merge, as per Bloomberg, which in turn could fasten the drug developments for the pandemic.
It should also be noted that the trade war remains on the table with US President Donald Trump pushing the European Union (EU) and China to remove tariffs on American lobsters to avoid punitive measures.
This might be the cause behind the slight pullback in the US 10-year Treasury yields to 0.897%. However, S&P 500 Futures remain positive around 3,203, up 0.50%, by the press time.
Also on the negative side was the latest New Zealand data concerning the construction of buildings. The first quarter (Q1) Volume of All Buildings dropped 5.7% seasonally adjusted versus -0.8% prior.
Moving on, the kiwi traders might struggle for direction amid a lack of major data/events on the calendar. As a result, qualitative catalysts will be the key to watch.
Technical analysis
While overbought RSI conditions signal the pair’s pullback to March high of 0.6450, the mid-January low near 0.6585 acts as the immediate resistance to watch during the quote’s further upside.
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