NZD/USD extends sideways grind below 0.7000 ahead of Powell's testimony

NZD/USD fluctuates in a tight range below 0.7000 on Tuesday.
US Dollar Index rebounds above 92.00 ahead of American session.
FOMC Chairman Jerome Powell will testify at 1800 GMT.

Eren Sengezer FXStreet

Following a four-day losing streak, the NZD/USD pair managed to close the day in the positive territory on Monday. However, the pair struggled to preserve its bullish momentum on Tuesday and went into a consolidation phase. As of writing, NZD/USD was unchanged on the day at 0.6985.

USD selloff pauses on Tuesday

The data from New Zealand showed on Tuesday that the Westpac Consumer Confidence improved to 107.1 in the second quarter from 105.2. This reading beat the market expectation of 99.5 but the disappointing annual Credit Card Spending data for May, which came in at 27.2% vs. 70.2% expected, didn't allow the kiwi to gather strength.

Later in the session, May Existing Home Sales and the Richmond Fed Manufacturing Index data from the US will be looked upon for fresh impetus.

More importantly, FOMC Chairman Jerome Powell will testify before the House Select Subcommittee on the Coronavirus Crisis on the Fed's response to the crisis. Ahead of this event, the US Dollar Index (DXY) is posting small daily gains at 92.03.

In the meantime, Wall Street's main indexes remain on track to open the day flat, suggesting that the cautious market mood is likely to help the greenback stay resilient against its rivals.

Technical levels to watch for

NZD/USD

Overview
Today last price	0.6981
Today Daily Change	-0.0006
Today Daily Change %	-0.09
Today daily open	0.6987

Trends
Daily SMA20	0.7169
Daily SMA50	0.7187
Daily SMA100	0.7174
Daily SMA200	0.7041

Levels
Previous Daily High	0.7
Previous Daily Low	0.6935
Previous Weekly High	0.7161
Previous Weekly Low	0.6923
Previous Monthly High	0.7317
Previous Monthly Low	0.7115
Daily Fibonacci 38.2%	0.6975
Daily Fibonacci 61.8%	0.696
Daily Pivot Point S1	0.6948
Daily Pivot Point S2	0.6909
Daily Pivot Point S3	0.6883
Daily Pivot Point R1	0.7013
Daily Pivot Point R2	0.7039
Daily Pivot Point R3	0.7079

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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