NZD is improving early Tuesday morning in Asia. In doing so, the kiwi pair struggles to justify upbeat trading sentiment, backed by the coronavirus (COVID-19) aid package updates from the US, amid lesser volumes due to the year-end holidays.

In rare support to the Republican leader, US House Democratic Party members backed President Donald Trump’s demand of a $2,000 paycheck while signing the much-awaited stimulus. The relief bill now heads to the Senate where Republicans have a majority and might block the road by citing budget deficits.

The anticipated tension between Australia and China, two of New Zealand’s biggest customers impacts Kiwi bulls. The downbeat concerns grew after China marked lower Aussie copper imports since January 2017 whereas Australia insists tough World Health Organization (WHO) inquiry into the COVID-19 origin.

Additionally, fears that the covid numbers will jump amid the year-end celebrations, as cited by US Health Official Dr. Anthony Fauci, joins the delaying of virus vaccination in some German cities to probe the risks. On the contrary, an update from AstraZeneca CEO Pascal Soriot that their covid vaccine is effective against new strain joins Brexit deal passage to favor the risks.

While the US stimulus updates keeps the markets entertaining amid a light calendar, covid and vaccine headlines, coupled with news concerning China can offer extra direction to the NZD/USD moves, expectedly to the north.

 NZD/USD 4 Hour Chart:

Support: 0.7078 (S1), 0.7053 (S2), 0.7022 (S3).

Resistance: 0.7133 (R1), 0.7164 (R2), 0.7189 (R3).

Amidst all the catalysts we expect a bullish trend for NZD/USD.