NZD/USD attracts bids near 0.6680 on Biden-Putin Summit

• NZD/USD has rebounded from 0.6680 as uncertainty vanished on Biden and Putin summit.
• Biden and Putin are likely to discuss security and strategic stability in Europe.
• The PBOC has kept Loan Prime Rate unchanged at 3.7%.

The NZD/USD pair has rebounded after hitting the lows of 0.6680 on Monday, as the market sentiment turns positive after US President Joe Biden and Russian leader Vladimir Putin have agreed to the idea of a summit to discuss “to discuss security and strategic stability in Europe”, as per The Guardian. The agreement of the summit has come with a stipulation that it will be held if Russia doesn’t invade Ukraine. White House has confirmed the summit between the two leaders. 

The positive development over the ongoing Russia-Ukraine tussle has eased the ultra-hot volatility in the market. The Asian markets are rebounding and risk-sensitive currencies are gaining limelight after the announcement.

Meanwhile, the People’ Bank of China (PBOC) has kept the interest rate unchanged at 3.7%, which is in line with the estimates. This has underpinned the kiwi against the greenback.

The coincidence of easing Russia-Ukraine tensions and the status quo maintained by the PBOC has infused fresh blood in the kiwi.

On the other side, the US dollar index (DXY) has eased after testing Friday’s high at 96.15. The momentum of weakness signifies that a significant build-up of offers has been created amidst the risk-friendly market profile, which may push the DXY further below the psychological figure of 96.00.