NZD/USD extends sideways grind above 0.7000
|- NZD/USD struggles to find direction at the start of the week.
- US Dollar Index stays flat above 92.00 in quiet day.
- Financial markets in US will remain closed due to Independence Day holiday.
Despite a decisive rebound on Friday, the NZD/USD pair closed the previous week in the negative territory and seems to be having a difficult time extending its recovery on Monday. As of writing, the pair was down 0.1% on a daily basis at 0.7020.
DXY holds comfortably above 92.00
In the absence of high-tier data releases and fundamental drivers, the USD's valuation continues to affect NZD/USD's movements. The mixed June jobs report from the US on Friday triggered a USD selloff and the US Dollar Index (DXY) lost 0.3%. On Monday, the DXY is moving sideways above 92.20, not allowing NZD/USD to turn north.
Financial markets in the US will be closed due to the Independence Day holiday and the market action is likely to remain subdued.
On the other hand, the NZIER Business Confidence Index data for the second quarter will be released from New Zealand on Tuesday. Earlier in the day, the ANZ Commodity Price Index arrived at 0.8% in June, compared to analysts' estimate of 1.2%, but this reading was largely ignored by market participants.
Meanwhile, the Reserve Bank of Australia (RBA) will announce its policy decisions and a significant reaction in the positively-correlated AUD/USD pair could impact NZD/USD's action.
Technical levels to watch for
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