NZD/USD pares early gains, stays calm around 0.7150 ahead of US data
- NZD/USD struggles to gather bullish momentum on Monday.
- US Dollar Index edges higher toward 94.00 following a weak start to the week.
- Eyes on mid-tier macroeconomic data releases from the US.
After closing the second straight week in the positive territory, the NZD/USD pair edged higher during the Asian session on Monday but lost its bullish momentum. As of writing, the pair, which touched a daily high of 0.7180, is virtually unchanged on a daily basis at 0.7150.
DXY rebounds toward 94.00 on rising yields
The renewed USD strength during the European trading hours seems to be weighing on NZD/USD. The US Dollar Index is currently rising 0.26% on the day at 93.85. In the absence of high-tier macroeconomic data releases, the more-than-1% increase witnessed in the benchmark 10-year US T-bond yield is providing a boost to the greenback at the start of the week.
The Federal Reserve Bank of Chicago's National Activity Index and the Dallas Fed Manufacturing Survey will be featured in the US economic docket later in the day. On Tuesday, Trade Balance data from New Zealand will be looked upon for fresh impetus.
In the meantime, US stock index futures are up between 0.1% and 0.3%. In case Wall Street's main indexes gain traction after the opening bell, the dollar could have a hard time finding demand as a safe haven and NZD/USD could look to edge higher. Nevertheless, investors are likely to keep a close eye on the US T-bond yields as well.
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.
