The New Zealand Dollar is edging higher early Tuesday on light holiday volume. The market is being supported by strong risk sentiment with most global equity markets trading at or near their highs of the year.
The Kiwi is getting a boost from a weaker U.S. Dollar. The greenback is being pressured by hopes for a new stimulus package in the United States and optimism over the rollout of vaccines in the United States and Europe.
In the U.S., the House of Representatives voted on Monday to increase stimulus payments to qualified Americans to $2,000 from $600, sending the measure on to the Senate for a vote. Most traders don’t expect the bill to get past the Republican-led Senate, but if it did, it would be an extremely bullish surprise.