NZD/USD extends correction, rises toward 0.7050

NZD/USD is pushing higher for the third straight day.
US Dollar Index struggles to stage a convincing rebound.
Eyes on IHS Markit's preliminary PMI reports for US.

Eren Sengezer FXStreet

Following Monday's decisive recovery, the NZD/USD pair preserved its bullish momentum on Tuesday and gained 35 pips. On Wednesday, the pair continues to edge higher and was last seen gaining 0.23% on the day at 0.7038.

USD fails to capitalize on Powell's testimony

The broad-based selling pressure surrounding the USD and the upbeat market mood on Tuesday helped NZD/USD close in the positive territory. Although FOMC Chairman Jerome Powell refrained from delivering any comments on the policy outlook, he adopted a less-concerned tone with regards to inflation and made it difficult for the greenback to find demand. Moreover, major equity indexes in the US managed to post daily gains, putting additional weight on the US Dollar Index (DXY).

Later in the day, the IHS Markit will publish the preliminary June Manufacturing and Services PMI reports. Investors expect the data to show an ongoing expansion in both sectors but investors will pay close attention to developments on price pressures. The US Census Bureau will release the New Home Sales figures for May as well. Ahead of these data, the DXY is staying flat on the day around 91.70.

There won't be any high-tier data releases from New Zealand and the USD's market valuation is likely to remain the primary driver of NZD/USD's movements. Meanwhile, Wall Street's main indexes remain on track to start the day little changed.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.7036
Today Daily Change	0.0009
Today Daily Change %	0.13
Today daily open	0.7027

Trends
Daily SMA20	0.7159
Daily SMA50	0.7186
Daily SMA100	0.7173
Daily SMA200	0.7043

Levels
Previous Daily High	0.7037
Previous Daily Low	0.6963
Previous Weekly High	0.7161
Previous Weekly Low	0.6923
Previous Monthly High	0.7317
Previous Monthly Low	0.7115
Daily Fibonacci 38.2%	0.7009
Daily Fibonacci 61.8%	0.6991
Daily Pivot Point S1	0.6981
Daily Pivot Point S2	0.6935
Daily Pivot Point S3	0.6907
Daily Pivot Point R1	0.7055
Daily Pivot Point R2	0.7083
Daily Pivot Point R3	0.7129

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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