NZD/USD consolidates daily gains near 0.7130
- NZD/USD is edging higher after posting small losses on Monday.
- US Dollar Index stays in the red near 90.00.
- Wall Street's main indexes look to renew all-time highs.
The NZD/USD pair closed the first day of the week slightly lower but gained traction on Tuesday as the greenback continues to have a difficult time finding demand as a safe-haven. As of writing, the pair was up 0.55% on a daily basis at 0.7136.
DXY retreats toward 90.00
In the absence of significant macroeconomic data releases and fundamental drivers, the market's risk perception remains the primary driver of major currency pairs' movements.
Reflecting the upbeat market mood, US stock index futures gain between 0.4% and 0.5% on Tuesday, suggesting that Wall Street's main indices remain on track to notch new record highs at the opening bell. In the meantime, the US Dollar Index (DXY) is losing 0.35% at 90.03.
With the New Year holiday approaching, however, the trading action is likely to remain subdued in the remainder of the week.
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.
