NZD/USD consolidates daily gains near 0.6880 ahead of NZ PPI data

The NZD/USD staged a decisive rebound after slumping to a 5-day low of 0.6814 earlier in the day and rose toward the 0.69 handle before going into a consolidation phase in the late NA session. As of writing, the pair was up 0.44% on the day at 0.6884.

The greenback in the second half of the day came under a renewed selling pressure and fueled the pair's upsurge. Although there were no macroeconomic data releases from the U.S. that could have triggered the USD sell-off, the sharp fall seen in the 10-year T-bond yield weighed on the currency The US Dollar Index is now looking to close the day 0.25% lower near 96.50.

On the other hand, the kiwi gathered strength on hopes of the U.S. and China making further progress on trade talks this week in Washington. President Trump in the last hour told reporters that China was "trying to move fast to avoid having the tariffs go up" and reiterated that trade talks were going well. Additionally, today's data from New Zealand showed that the bi-weekly GDT auction yielded a 0.9% increase in the GDT price index and supported the kiwi.

The next data from New Zealand will be the Producer Price Index (PPI) for the fourth quarter, which is expected to edge down to 1.1% on a quarterly basis from 1.4%.

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