There is a risk-on feel in the air in Asian trade today and the Aussie and Kiwi are both pushing higher.

Overnight, there was certainly optimism around as US President Trump suggested that he expected to sign a significant part of the trade deal with China ahead of schedule. That lead the SPX to push higher as we start looking at a test of record-high levels.

There is also a growing focus as we head towards the FOMC meeting this week, that the experts are saying will lead to another rate cut. All that has helped see both the AUD/USD and NZD/USD catch a bit of a bid in early trade.

However, so far it has been the Kiwi that is outperforming to the upside. Currently, it’s up 0.18% and creeping higher.

There have been a few headlines doing the rounds early, with the suggestion that a major super fund in NZ is going to ease off on buying offshore currencies, meaning that there will be fewer outflows from a huge institution. This would likely see the Kiwi appreciate.

Other than that there is simply a bit more optimism around.

Looking at the key levels today, we can see that the NZD/USD has bounced off the 0.6350 after dipping as low as 0.6340.

I think a natural target for this bounce could be the 0.6400 level or just under. We can see that price made a pretty clean double top with a lower high above that point. That was a technical catalyst for a push lower.

We did have a semi round-number level at 0.6350 and that has so far held up, but I think if the positive sentiment remains then we could push a little higher again. Particularly given the Kiwi and the implications on more positive news on the US-China talks.