NZD, AUD, and CAD gain ground as risk appetite improves, reversing last week’s dollar-driven declines.
The New Zealand, Australian, and Canadian dollars advanced against the USD Monday, recovering from last week’s sharp losses amid a shift to risk-on sentiment. The NZDUSD and AUDUSD had dropped sharply Friday on stock liquidation, but both rebounded as the dollar weakened today, though at varying paces.
Last week’s sell-off in commodity-linked currencies was driven by a flight to the USD, with USDCAD also rising as the CAD faced pressure. Today’s reversal raises questions about whether the USD’s recent strength has peaked, with technical levels now under scrutiny.
For NZDUSD, buyers defended key support at 0.5800, a 61.8% retracement of its April-May rally, before pushing the pair above a swing zone between 0.5813 and 0.5822. The rally stalled at the falling 100-hour moving average, where sellers emerged.