Broader Risk-On Impetus Drives Price Action Early Doors

NZD/USD has kicked off on a slightly firmer footing, as the imminent presentation of a bipartisan stimulus bill in the U.S. Congress, emergency approval of Pfizer's Covid-19 vaccine in the U.S. and positive Brexit news have lent support to broader risk appetite. The pair ground higher, but fell short of testing last Friday's highs.

• The rate sits +14 pips at $0.7098 as we type. A break above Dec 11 high of $0.7114 would shift topside focus to the upper 2.0% Bollinger band at $0.7140. Conversely, losses past Dec 9/7 lows of $0.7011/06 would bring Nov 23 low of $0.6897 into view.
• NZIER published their quarterly consensus forecasts, which "show a substantial upward revision to growth forecasts over the coming year. The consensus is clearly for a 'V' shaped economy recovery in New Zealand."
• NZ highlights this week include Westpac Consumer Confidence (Tuesday), BoP current account balance (Wednesday), quarterly GDP (Thursday) as well as ANZ Consumer Confidence, final ANZ Business Confidence & trade balance (Friday).
• In addition, the gov't will release its Half-Year Economic and Fiscal Update on Thursday. In a weekly note, Westpac anticipates that the Treasury will acknowledge that the economic rebound has been faster than expected and "is set to revise up its forecasts significantly."