NZD/USD seesaws around 0.6770 during early Wednesday morning in Asia, after a stellar bullish performance the previous day. The kiwi pair rallied the most among the G10 currencies, also posted the biggest daily gains in two months, before the latest sideways moves.

On a broader front, “President Biden on Tuesday said he thinks there is still a possibility that his Build Back Better agenda can get done, despite Sen. Joe Manchin’s opposition of the climate and social spending bill,” said The Hill. Additionally, US President Biden and UK PM Boris Johnson’s rejection of fresh lockdown measures before Christmas also underpins the risk-on mood.

Alternatively, the US appoints a new Tibet Coordinator amid tensions with China while the tension with Russia continues. “New export control measures being discussed by the US could halt Russia import of smartphones, key aircraft and automobile components,” said Reuters.

Talking about data, New Zealand’s Credit Card Spending improved in November from a revised down -5.2% to -0.1% versus -2.1% market forecast. Further, New Zealand ANZ – Roy Morgan Consumer Confidence (Dec) improved from 97 to 98.

While portraying the risk-on mood, which also helped NZD/USD prices, the US Treasury yields rose 4.8 basis points (bps) to 1.467% whereas the Wall Street benchmarks snapped a three-day downtrend by the end of Tuesday’s North American session.