NZD/USD Posts Gains as Omicron’s Fears Retreat

After touching one-year low on Monday, the NZD/USD achieved a notable comeback on Tuesday during the New York trading session.

The pair is trading now around 0.6772. The market sentiment is positive, as can be concluded by a quick look at the performance of the global shares markets, which are reaping gains.

Although the newly discovered Omicron variant is more contagious than other strains, COVID-19 patients with that variant have only shown mild symptoms. An antibody treatment by Glaxo is said to work well on the omicron variant, as some studies suggest.

In the overnight session, the NZD/USD dipped to a fresh year-to-date low at 0.6735, then rebounded towards the 100-hour simple moving averages, dynamic resistance that stalled the upside move triggered by US dollar weakness.

During the last two hours, the USD regained some demand, pushing the pair towards the 50-SMA at 0.6754 to stabilize at the current level.