Listen to the market mood for the NZDUSD currency pair.
The risk tone is currently positive as Asian, European and US stock markets all trade positive on the day with positive news from the company Gilead regarding its drug Remdesivir.
The NZD is benefiting as a commodity currency from the associated moves higher in the stock markets (S&P500 +2.66%, Nasdaq+3.57% and Dow Jones +2.21%) as well as from the fact that the number of COVID19 cases in New Zealand are extremely low.
The USD can be expected to be weaker too on the positive risk tones from Gilead’s announcement.
- Therefore, expect NZDUSD buyers on pullbacks.
- We expect this trade to play out over the next session before the close of the US Session and it has a moderate conviction level.
- The main risk to this outlook is any negative news on COVID19 or denial/negative comment of initial announcement.