NZD/USD consolidates Monday's gains above 0.7300, eyes on Powell

NZD/USD is fluctuating in a relatively tight range on Tuesday.
US Dollar Index is posting modest daily gains above 90.00.
Investors await FOMC Chairman Jerome Powell's testimony at 1500 GMT.

Eren Sengezer FXStreet

The NZD/USD pair closed the third straight day in the positive territory and touched its highest level since April 2018 at 0.7345 on Monday. With the trading action turning subdued on Tuesday, the pair seems to have gone into a consolidation phase and was last seen losing 0.11% on the day at 0.7320.

USD selloff takes a break ahead of Powell's testimony

The broad-based selling pressure surrounding the greenback provided a boost to NZD/USD at the start of the week. The US Dollar Index (DXY) dropped below 90.00 for the first time in more than a month during the Asian trading hours on Tuesday but staged a modest rebound. At the moment, the DXY is up 0.13% at 90.13.

Later in the day, the Conference Board's Consumer Confidence Index and the Federal Reserve Bank of Richmond's Manufacturing Index will be looked upon for fresh impetus.

More importantly, FOMC Chairman Jerome Powell's semi-annual testimony before the Senate Banking Committee will be watched closely by market participants.

Powell's comments on the latest upsurge witnessed in US Treasury bond yields and concerns over an uncontrolled increase in inflation could ramp up the volatility in the second half of the day. If Powell downplays inflation worries and reaffirms the Fed's dovish stance, the greenback could have a tough time finding demand and allow NZD/USD to regain its traction.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7315
Today Daily Change	-0.0010
Today Daily Change %	-0.14
Today daily open	0.7325

Trends
Daily SMA20	0.7212
Daily SMA50	0.7173
Daily SMA100	0.6996
Daily SMA200	0.6768

Levels
Previous Daily High	0.7343
Previous Daily Low	0.7281
Previous Weekly High	0.7316
Previous Weekly Low	0.7158
Previous Monthly High	0.7316
Previous Monthly Low	0.7096
Daily Fibonacci 38.2%	0.732
Daily Fibonacci 61.8%	0.7305
Daily Pivot Point S1	0.729
Daily Pivot Point S2	0.7254
Daily Pivot Point S3	0.7227
Daily Pivot Point R1	0.7352
Daily Pivot Point R2	0.7379
Daily Pivot Point R3	0.7415

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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