AUD/USD and NZD/USD Fundamental Daily Forecast – Rebound in Risk Sentiment Underpinning Aussie, Kiwi

The Australian and New Zealand Dollars are edging higher on Monday as a rebound in global equity markets supported risk sentiment while shifting upside momentum in the U.S. Dollar back down. The catalyst behind the move is optimism about U.S. President Joe Biden’s stimulus plan which took precedence over the impact of COVID-19.

At 11:15 GMT, the AUD/USD is trading .7731, up 0.0016 or +0.20% and the NZD/USD is at .7208, up 0.0026 or +0.37%.

On Friday, risk sentiment turned more cautious as European economic data showed that lockdown restrictions to limit the spread of the virus hurt business activity, dragging stocks lower. The mood picked up on Monday, however, lessening demand for the safe-haven U.S. Dollar.

Helping to support risk sentiment was the news that officials in President Biden’s administration reached out to Republican and Democrat lawmakers by phone on Sunday to head off Republican concerns that the $1.9 trillion stimulus proposal was too expensive.

Lawmakers from both parties said they had agreed that getting the COVID-19 vaccine to Americans should be a priority, but some Republicans objected to such a hefty package only a month after Congress passed a $900 billion relief measure.

Australia Approves Pfizer-BioNTech COVID-19 Vaccine

Australia on Monday approved the Pfizer-BioNTech COVID-19 vaccine for use but warned AstraZeneca’s international production problems mean the country would need to distribute a locally manufactured shot earlier than planned.

The country’s medical regulator was one of the first in the world to complete a comprehensive approval of the Pfizer-BioNTech vaccine, Prime Minister Scott Morrison said on Monday, noting it was a year since the first local coronavirus case was detected.

Vaccination of priority groups with the Pfizer vaccine is expected to begin in late February at 80,000 doses per week, Health Minister Greg Hunt told reporters.

Pfizer had told the Australian government it anticipated continuous supply but would provide global production guidance “in mid-February for March and beyond on a weekly basis,” he said.

Australia has set a target of 4 million vaccine doses by April. It has also committed to supplying vaccines to Pacific Island nations on a later timetable.

For a look at all of today’s economic events, check out our economic calendar.