- 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.
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
|Today last price||0.7036|
|Today Daily Change||0.0009|
|Today Daily Change %||0.13|
|Today daily open||0.7027|
|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|
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