NZD/USD built on the overnight positive move and gained traction for the second successive day
Investors drew comfort after the US Food and Drug Administration (FDA) granted full approval to the Pfizer/BioNTech COVID-19 vaccine. This was evident from a generally positive tone around the equity markets, which undermined demand for the safe-haven greenback and acted as a tailwind for the perceived riskier kiwi.
That said, a goodish pickup in the US Treasury bond yields might help limit the ongoing USD pullback from a nine-and-half-month high. Investors might also be reluctant to place any aggressive bets ahead of Fed Chair Jerome Powell's speech at the Jackson Hole Symposium, warranting some caution before positioning for any further gains. Market participants now look forward to the US economic docket, featuring the second-tier releases of New Home Sales and Richmond Manufacturing Index. The data might do little to provide any meaningful impetus, though the broader market risk sentiment might influence the USD and produce some trading opportunities around the NZD/USD pair.