NZD/USD shoots higher from 0.6680 ahead of Biden’s meeting with world leaders

• NZD/USD has bounced sharply after hitting a low of 0.6680 as market sentiment turns cautiously positive.
• Asian markets have rebounded as investors start pouring funds back into risk-sensitive assets.
• The DXY remains subdued amid weaker US Initial Jobless claims and improving mood.

The NZD/USD pair has attracted some bids after consolidating in a narrow range of 0.6684-0.6695. The pair has surged sharply and is now eyeing Thursday’s high at 0.6718, as investors cheer the news of a meeting hosted by US President Joe Biden with international leaders on the potential Russian invasion of Ukraine.

US President Biden will host a meeting on the Russia-Ukraine tussle on Friday with leaders of Canada, Germany, France, Italy, Romania, Poland, Britain, EU, and NATO, reported by the Canadian Prime Minister’s office.

The involvement of major leaders at this scale in the agenda is indicating that some positive developments could buildup further and ultra-hot volatility in the market will ease out. While this headline has started cooling off the uncertainty in the market as the S&P 500 futures rebound sharply. Moreover, the Asian markets have bounced alongside. Adding to that, the aussie and the kiwi have pared their early losses.

Meanwhile, the US dollar index (DXY) is trading lackluster in a limited range of 95.70-95.88 on weak performance from the US Initial Jobless Claims (IJC) data, published by the Department of Labor. The data came in at 248k, well above the market estimates and previous print of 219k and 225k respectively.

The US Treasury yields have turned positive and are likely to surpass 2%, as investors regain confidence over risk-sensitive assets.

The obscurity over the Russia-Ukraine situation still persists and the market may behave according to the headlines in the coming sessions.