NZD/USD rebounds above 0.6960 amid broad USD weakness
- NZD/USD is pushing higher following a four-day losing streak.
- US Dollar Index retreats toward 92.00 after last week's rally.
- Wall Street's main indexes look to open higher on Monday.
The NZD/USD pair lost nearly 200 pips last week and closed the third straight week in the negative territory. In the absence of significant fundamental drivers on Monday, the pair seems to be staging a correction and was last seen gaining 0.45% on the day at 0.6965.
DXY rally loses steam on Monday
The unabated USD strength following the hawkish tilt in the FOMC's monetary policy outlook weighed heavily on NZD/USD in the second half of the previous week. The US Dollar Index (DXY), which tracks the USD's performance against a basket of six major currencies, rose 2% and registered its largest weekly percentage gain since the beginning of the coronavirus outbreak.
There won't be any high-tier macroeconomic data releases from the US in the remainder of the day and the pair seems poised to extend its rebound.
Meanwhile, S&P Futures and Nasdaq Futures both gain around 0.5% ahead of Wall Street's opening bell, suggesting that the risk-positive market environment could make it difficult for the USD to regather its strength during the American session.
On Tuesday, the Westpac Consumer Survey for the second quarter from New Zealand will be looked upon for fresh impetus during the Asian trading hours.
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.
