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NZ Dollar Advances On Coronavirus Vaccine Hopes

The NZ dollar firmed against its major counterparts in the Asian session on Tuesday, as Asian stock markets rose following the overnight rally on Wall Street after promising early-stage trial results of a coronavirus vaccine from Moderna.

The American pharmaceutical company Moderna announced on Monday that its mRNA vaccine was successful in preventing the coronavirus in Phase 1 human trial.

Optimism about an economic recovery as more countries reopen their economies as well as a jump in crude oil prices also lifted stocks.

Data from Statistics New Zealand showed that New Zealand producer price outputs rose 0.1 percent on quarter in the first quarter of 2020 - slowing from 0.4 percent in the three month prior.

Producer price inputs fell 0.3 percent on quarter after rising 0.1 percent in the previous three months.

The kiwi appreciated to a 6-day high of 0.6071 against the greenback, from a low of 0.6033 set at 5:30 pm ET. The next likely resistance for the kiwi is seen around the 0.65 level.

The kiwi moved up to a 6-day high of 65.32 against the yen, following a decline to 64.74 at 5:30 pm ET. On the upside, resistance is likely seen near the 67.5 level.

Final data from the Ministry of Economy, Trade and Industry showed that Japan industrial production declined in March as initially estimated.

Industrial production fell a seasonally adjusted 3.7 percent month-on-month in March. This was in line with initial estimate.

After dropping to 1.8084 at 5:30 pm ET, the kiwi drifted higher to a 6-day high of 1.7959 against the euro. The kiwi is seen finding resistance around the 1.70 level.

The kiwi rose to a 2-day high of 1.0762 against the aussie, reversing from a low of 1.0829 seen at 9:00 pm ET. The kiwi is likely to find resistance around the 1.04 level.

Looking ahead, German ZEW economic sentiment index for May and Eurozone construction output for March are due in the European session.

In the New York session, U.S. housing starts and building permits for April are scheduled for release.

At 10:00 am ET, Federal Reserve Chair Jerome Powell testifies on Coronavirus Aid, Relief, and the Economic Security Act before the Senate Banking, Housing, and Urban Affairs Committee in Washington DC.

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