- NZD/USD continued gaining traction for the sixth straight session on Monday.
- The upbeat market mood benefitted perceived riskier currencies, like the kiwi.
- A subdued USD demand remained supportive amid absent economic releases.
The NZD/USD pair maintained its bid tone through the early North American session and was last seen trading near multi-month tops, around the 0.6530-35 region.
The pair prolonged its recent bullish momentum and continued gaining traction for the sixth consecutive session on Monday. The positive move was supported by a combination of factors, including the prevalent upbeat market mood and a subdued USD price action.
The global risk sentiment remained well supported by hopes for a potential of V-shaped economic recovery and expectations that the worst of the coronavirus pandemic was over. This, in turn, continued benefitting perceived riskier currencies, like the kiwi.
On the other hand, the risk-on environment undermined demand for traditional safe-haven currencies and failed to assist the US dollar to build on Friday’s post-NFP positive move. A subdued USD demand was seen as another factor driving the NZD/USD pair higher on Monday.
The uptick, however, lacked any strong follow-through as investors now seemed to wait for a fresh catalyst before placing fresh directional bets. This week’s FOMC monetary policy update will now play a key role in driving the NZD/USD pair near-term momentum.
Technical levels to watch
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