NZD/USD consolidates daily gains above 0.7200

NZD/USD started the new week on a firm footing.
US Dollar Index fluctuates in a tight range above 90.00.
Wall Street's main indexes look to open in the positive territory.

Eren Sengezer FXStreet

The NZD/USD pair gained traction during the Asian trading hours on Monday and advanced to a daily top of 0.7218 before going into a consolidation phase. As of writing, the pair was up 0.42% on the day at 0.7214.

DXY pares early losses ahead of mid-tier data

The broad-based selling pressure surrounding the greenback at the start of the week fueled the pair's climb. However, a negative shift witnessed in market sentiment after the IFO data from Germany showed a deterioration in business sentiment helped the greenback find demand and limited NZD/USD's upside.

Ahead of the Chicago Fed National Activity Index and the Dallas Fed Manufacturing Business Index data from the US, the US Dollar Index (DXY) is posting small daily gains at 90.26.

In the meantime, the S&P 500 Futures are up 0.3% on the day, suggesting that risk flows could retake control of financial markets in the second half of the day and hurt the safe-haven USD.

On Tuesday, the Reserve Bank of New Zealand (RBNZ) will release the Credit Card Spending data for December. The Business NZ Performance of Services Index (PSI) will be looked upon for fresh impetus as well.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7212
Today Daily Change	0.0031
Today Daily Change %	0.43
Today daily open	0.7181

Trends
Daily SMA20	0.7163
Daily SMA50	0.7087
Daily SMA100	0.6878
Daily SMA200	0.6645

Levels
Previous Daily High	0.7226
Previous Daily Low	0.7166
Previous Weekly High	0.7226
Previous Weekly Low	0.7096
Previous Monthly High	0.7241
Previous Monthly Low	0.7002
Daily Fibonacci 38.2%	0.7189
Daily Fibonacci 61.8%	0.7203
Daily Pivot Point S1	0.7156
Daily Pivot Point S2	0.7131
Daily Pivot Point S3	0.7096
Daily Pivot Point R1	0.7216
Daily Pivot Point R2	0.7251
Daily Pivot Point R3	0.7276

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.

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