NZD/USD pares early gains, retreats to 0.6980 area


  • 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

NZD/USD

Overview
Today last price 0.6981
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 0.6981
 
Trends
Daily SMA20 0.7014
Daily SMA50 0.7136
Daily SMA100 0.7143
Daily SMA200 0.707
 
Levels
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

 

 

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