NZD/USD steadily climbs to near 1-week tops, around 0.5900 mark
- NZD/USD edged higher for the fourth straight session amid broad-based USD weakness.
- Improving global risk-sentiment provided an additional boost and remained supportive.
- Concerns over the economic fallout from the coronavirus pandemic might cap strong gains.
The NZD/USD pair climbed to near one-week tops in the last hour, with bulls looking to extend the momentum further beyond the 0.5900 round-figure mark.
The pair built on its recent recovery move from near 11-year lows set last week and edged higher for the fourth consecutive session on Wednesday amid some follow-through US dollar unwinding trade.
The USD extended its recent pullback and remained depressed for the fourth straight session in wake of the Fed's unprecedented open-ended and unlimited QE program announced earlier this week.
Adding to this, the US Senate finally reached an agreement on a stimulus package to offset any negative impact from the coronavirus pandemic on the US economy and boosted investors' confidence.
This supported a recovery in the global risk sentiment, which was evident from strong gains in the equity markets and provided an additional boost to perceived riskier currencies, including the kiwi.
It will now be interesting to see if the pair is able to capitalize on the move or runs out of the steam at higher levels amid mounting fears over the economic fallout from the coronavirus pandemic.
Market participants now look forward to Wednesday's important release of Durable Goods Orders data for some meaningful trading opportunities later during the early North-American session.
Technical levels to watch