NZD/USD clings to strong daily gains above 0.7000 ahead of mid-tier US data
- NZD/USD regained its traction after closing in the red on Monday.
- US Dollar Index stays below 92.00 on Tuesday.
- Second-quarter jobs report from New Zealand will be looked upon for fresh impetus.
The NZD/USD pair registered small losses on Monday but managed to gather bullish momentum during the Asian session on Tuesday and climbed to a daily high of 0.7019. As of writing, the pair was up 0.6% on the day at 0.7010.
Market mood remains upbeat on Tuesday
Earlier in the day, the sharp upsurge witnessed in the AUD/USD pair following the Reserve Bank of Australia's policy announcements helped the positively-correlated NZD/USD edge higher. Furthermore, the renewed USD weakness seems to be allowing the pair to preserve its momentum ahead of the American session. Currently, the US Dollar Index is down 0.16% on the day at 91.92.
Later in the session, the ISM-NY Business Conditions Index, the IBD/TIPP Economic Optimism Index and June Factory Orders data will be featured in the US economic docket.
Meanwhile, Wall Street's main indexes remain on track to open the second straight day in the positive territory, suggesting that the greenback could continue to have a difficult time finding demand if risk flows remain in control of financial markets.
On Wednesday, Statistics New Zealand will release the second-quarter jobs report. The Unemployment Rate is expected to decline to 4.5% from 4.7% in the first quarter. A stronger-than-forecast print is likely to help the NZD to continue to outperform its rivals and vice versa.
New Zealand Employment Preview: Upbeat jobs data to open RBNZ rate-hike door.
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.
