The NZD and AUD Rally on Moderna News
Rowan Crosby • 2 min read
Fresh from last week’s news on a COVID vaccine, Moderna has come out with an even better update that has rallied risk assets.
Yesterday, it was announced that Moderna’s Covid vaccine is nearly 95% effective, which is slightly up on the Pfizer results that were also at a very solid 90% effectiveness.
What that meant was that risk assets across the board rallied for another day and it was both the NZD/USD and AUD/USD that led the charge higher.
The Kiwi was the standout performer overnight and price is now right back at the highs of 0.6900. We can see that it has attempted this level a few times now but in both instances, it hasn’t been able to crack it.
The bullish tone is also a result of the RBNZ meeting that was held last week, which suggested that negative interest rates might not be going ahead. This is something that we’ve been hearing from a number of central banks across the globe, so to buck the trend would suggest, the Kiwi could be an outperformed – at least in the short term.
The trade here is certainly to look for fresh highs on a break and hold of the current 0.6900 level. There is plenty of support at 0.6800 for the time being.
The Aussie is also holding around that 0.7325 level, which has seen a fair bit of resistance in the past – albeit it is a bit of a non-round number.
The difference here is that the RBA is still talking about more rate cuts in some form as and such price is still off the highs of around 0.7400.
Clearly, if you are looking at buying strength, the NZD/USD is the best option at this stage.
It is making highs along with the likes of US equities, so is a good option, for those looking to rise any upside momentum. That said, price hasn’t really taken out the highs just yet, so we need to be patient here.