- NZD/USD struggles to hold above 0.7000 on Tuesday.
- US Dollar Index continues to push higher during the European session.
- Focus shifts to June CPI data from the US.
After closing the first trading day of the week in the negative territory, the NZD/USD pair edged higher during the Asian session and reached a daily high of 0.7010 before losing its traction. As of writing, the pair was virtually unchanged on a daily basis at 0.6980.
Earlier in the day, the data from New Zealand showed that the Food Price Index increased by 1.4% on a monthly basis in June. More importantly, China posted a trade surplus of $51.5 billion, compared to analysts' estimate of $44.2 billion, with Exports rising by 32.2% (in USD terms) on a yearly basis in June. Although these figures helped the kiwi find demand, the renewed USD strength in the European session forced NZD/USD to turn south.
Eyes on US inflation report
The US Dollar Index, which tracks the USD's performance against a basket of six major currencies, is up 0.15% on the day at 92.36.
Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for June. Investors expect the CPI to come down to 4.9% on a yearly basis from 5% recorded in May.
Previewing this data, "the important and unanswered question is how much inflation has been created by the economic dislocation of the lockdowns," noted FXStreet senior analyst Joseph Trevisani. "Market response to the June and subsequent CPI figures will be restrained until we begin to get an answer to that important question."
US Consumer Price Index June Preview: Has inflation peaked?
Technical levels to watch for
|Today last price||0.6981|
|Today Daily Change||0.0000|
|Today Daily Change %||0.00|
|Today daily open||0.6981|
|Previous Daily High||0.7009|
|Previous Daily Low||0.6948|
|Previous Weekly High||0.7106|
|Previous Weekly Low||0.6923|
|Previous Monthly High||0.7289|
|Previous Monthly Low||0.6923|
|Daily Fibonacci 38.2%||0.6971|
|Daily Fibonacci 61.8%||0.6986|
|Daily Pivot Point S1||0.695|
|Daily Pivot Point S2||0.6918|
|Daily Pivot Point S3||0.6889|
|Daily Pivot Point R1||0.7011|
|Daily Pivot Point R2||0.704|
|Daily Pivot Point R3||0.7072|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD remains depressed near 1.0700 ahead of Lagarde, US data
EUR/USD is trading close to 1.0700, on the defensive in the European session. The US Dollar is extending post-US NFP gains amid cautious optimism, as investors assess the Fed rates outlook. Eurozone Sentix data slumps to -17.1 in June. Lagarde, US data awaited.
GBP/USD drops below 1.2400 amid firmer US Dollar
GBP/USD is falling below 1.2400 amid a notable US Dollar demand, dragging the major lower for the second successive day on Monday. Markets repricing of the Fed interest rates outlook push the US Treasury bond yields higher, in turn, the US Dollar. US ISM Services PMI next of note.
Gold finds short-term cushion above $1,940, more downside looks solid
Gold price has found a short-term cushion near $1,943.00, however, more downside seems favored. Gold price witnessed an intense sell-off after a mean-reversion move to near the 200-period EMA at $1,977.32.
Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September
Ripple has a 25% chance of winning its legal battle against the US SEC, according to pro-XRP attorney John Deaton. Over the weekend, Deaton shared his opinion on Ripple’s likelihood of both an outright win and a partial victory.
Services PMIs the next focus after last week’s bumper US jobs report
While US markets finished the week on a high, after another bumper jobs report and a positive week across the board, markets in Europe, while finishing the week on a high, struggled to match the exuberance of investors on the other side of the Atlantic.