NZD/USD moves sideways near 0.6540, eyes on Powell speech
- NZD/USD trading range narrows in the second half of the day.
- US Dollar Index stays calm below the 98 mark.
- FOMC Chairman Powell and Vice Chair Clarida are scheduled to speak today.
The NZD/USD pair is fluctuating in a very tight range on Monday as the trading action in the FX space turns subdued in the absence of fundamental drivers. As of writing, the pair was up 0.25% on a daily basis at 0.6535.
Despite the modest rebound today, the pair is likely to struggle to gather bullish momentum in the near-term as investors are staying on the sidelines while waiting to see the impact of the U.S. decision to cut off Huawei supplies on the U.S.-China trade dispute. An escalation in the conflict could continue to hurt antipodeans such as the kiwi as we have witnessed in the previous week and put the pressure under a renewed bearish pressure.
Meanwhile, following last week's rally, the US Dollar Index is extending its consolidation phase below the 98 mark today, helping the pair remain in its narrow trading band. Later in the session, FOMC Vice Chair Clarida and Chairman Powell will be delivering speeches.
The only data from the U.S. revealed that the Chicago Fed's National Activity Index dropped to -0.45 in April from 0.05 in March but was largely ignored by the participant.
Credit card spending from New Zealand will be released in the early trading hours of the Asian session on Tuesday ahead of the GDT auction and the retail sales data on Wednesday.
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.
