The New Zealand dollar rode broad risk sentiment, counter currency weakness, and positive pandemic related headlines higher to the top spot on Friday!
New Zealand Headlines and Economic data
Broad risk sentiment started to pick up towards positive on the session to help lift the Kiwi higher, likely on positive COVID-19 vaccine headlines (Cambridge university aims for autumn trials of coronavirus vaccine after UK funding) and possibly on news that the pandemic pace broad slows worldwide.
The Kiwi slowed pace but maintained its gains during the Thursday session, as traders reacted in favor of risk assets to the announced new approach to inflation by Fed Chair Jerome Powell during the Jackson Hole Economic Symposium, as well as news of a new low cost rapid COVID-19 antigen test from Abbott Labs.
Thursday’s Fed inspired risk-on vibes overflowed into Friday to lift the Kiwi further, along with the news of Auckland easing its lockdown despite new Covid cases. The bulls may have gotten additional help from the U.S. markets as equities rallied (Dow closes more than 150 points higher to erase its 2020 losses) to help other risk assets close higher into the weekend.