NZD/USD builds on Monday's gains, approaches 0.6600
- NZD/USD is rising for the second straight day on Tuesday.
- US Dollar Index continues to push lower toward 94.00.
- Focus shifts to CB Consumer Confidence data from the US.
The NZD/USD pair took advantage of the broad USD weakness on Monday and closed the day in the positive territory. With the bearish pressure on the greenback staying unabated on Tuesday, the pair continued to push higher and was last seen gaining 0.5% on a daily basis at 0.6585.
USD remains on the back foot ahead of key events
The upbeat market mood amid renewed optimism for another coronavirus relief bill in the US weighed on the greenback at the start of the week. Although major European equity indexes are posting modest losses to reflect a relatively cautious market environment, the US Dollar Index (DXY) is down 0.15% on the day at 94.13.
In the second half of the day, the Conference Board's Consumer Confidence data from the US will be looked upon for fresh impetus. Additionally, Federal Reserve's Vice Chairman Richard Clarida and NY Fed President John Williams are scheduled to speak later in the American session.
At the moment, the S&P 500 futures are virtually unchanged on the day as investors seem to be opting out to stay on the sidelines ahead of the first presidential debate. If Wall Street's main indexes struggle to build on Monday's impressive gains, the USD could stay resilient against its rivals and cap NZD/USD's upside.
During the Asian session on Wednesday, ANZ Business Confidence and ANZ Activity Outlook data will be released from New Zealand.
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.
