NZD/USD rises to 0.6050 on US dollar weakness

• Kiwi among top performers on Friday amid risk appetite.
• US dollar falls across the board after reversing versus main European currencies and the yen.

The NZD/USD pair is rising on Friday but is still down for the week. It printed a fresh daily high at 0.6050 and as of writing it trades at 0.6030. 

Most of the gains were realised during the Asian session amid an improvement in market sentiment on the bank of hopeful results from the use of Gilead's Remdesivir. More recently the US dollar bounced to the downside against main European currencies and boosted further NZD/USD. 

In Wall Street, the Dow Jones gains 1.70%, and the Nasdaq rises 0.70%. The Global Dow is up by 2.25%. Crude oil prices tumble 8.50%. US yields are back near Thursday’s lows, weighing on the USD. 

Technical outlook 

From a week ago, the kiwi is trading modestly lower, but it holds a bullish tone in the very short-term. On Thursday it bottomed at 0.5919, and since then it has been moving to the upside. 

On a wider perspective, the pair continues to show a consolidation with risks tilted to the upside. A consolidation above 0.6100 would likely clear the way to more gains. On the flip side, if it breaks and holds firm under 0.5940/60 (horizontal/20-day SMA), a test of 0.5840 (April low) would be on the radar.