NZD/USD advances to 0.7250 area ahead of mid-tier US data
- NZD/USD turned north after closing in the negative territory on Monday.
- US Dollar Index stays below 90.00 on Tuesday.
- Wall Street's main indexes look to open higher.
The NZD/USD pair posted modest losses on Monday but managed to reverse its direction on Tuesday. As of writing, the pair was up 0.78% on a daily basis at 0.7255.
USD selloff picks up steam
The improving market sentiment is helping the kiwi find demand. Reflecting the upbeat market mood, major European equity indexes are up between 0.3% and 0.4% on the day while the S&P 500 Futures and the Nasdaq Futures gain 0.3% and 0.7%, respectively.
On the other hand, the greenback remains on the back foot with the US Dollar Index trading at its lowest level since late February at 89.85, losing 0.4% on the day.
Later in the day, April Building Permits and Housing Starts data will be featured in the US economic docket. Additionally, the bi-weekly GDT Price Index from New Zealand will be looked upon for fresh impetus during the American trading hours.
On Wednesday, the Producer Price Index (PPI) data for the first quarter will be released from New Zealand as well. Nevertheless, investors are unlikely to react to this data and the risk perception could continue to drive the pair's movements before the FOMC releases the minutes of the April policy meeting.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
