NZD/USD clings to modest daily gains near 0.6670 ahead of US data
- Business NZ PMI improves slightly in June, misses expectations.
- US Dollar Index continues to move sideways near the 97 handle.
- Coming up: Producer Price Index data from the U.S.
The NZD/USD pair inched higher toward the 0.67 handle earlier in the day but, once again, lost its momentum before testing that level. As of writing, the pair was trading at 0.6670, adding 0.15% on a daily basis.
The pair seems to be taking advantage of the selling pressure surrounding the greenback. Despite a modest recovery attempt following yesterday's inflation report, the US Dollar Index is having a difficult time gaining traction. Ahead of the Producer Price Index data to be released in the early trading hours of the American session, the DXY is posting small losses at 97.
Earlier today, the data published by the Business NZ showed that the business activity in June expanded at a more robust pace than expected with the headline PMI improving to 51.3 from 50.2. However, this reading fell short of the market expectation of 53.1 but didn't have a negative impact on the kiwi.
Meanwhile, the data from China revealed that the trade surplus in June widened to $50.98 billion to beat the analysts' estimate of $44.65 billion and helped antipodeans gather strength against its rivals.
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.
