NZD/USD recovers above 0.7200 after opening with a bearish gap
- NZD/USD started the new week with a bearish gap.
- NZD/USD climbed into the positive territory ahead of American session.
- US Dollar Index edges lower toward 90.00 after pushing higher earlier.
The NZD/USD pair opened below Friday's closing level and touched a daily low of 0.7190 before staging a recovery during the European session. As of writing, the pair was up 0.15% on a daily basis at 0.7220.
USD struggles to preserve bullish momentum
US Treasury Secretary Janet Yellen told Bloomberg News over the weekend that an increase in inflation and interest rates would signal a positive development for the US economy. These remarks helped the USD gather strength against its rivals at the start of the week and the US Dollar Index (DXY) reached a daily high of 90.30 before losing its traction. At the moment, the DXY is posting small daily losses at 90.08, allowing NZD/USD to stay in the positive territory.
Earlier in the day, the data from China showed that exports in May rose less than expected and the trade surplus expanded to $45.53 billion, falling short of the market expectation of $50.5 billion. Nevertheless, this report had little to no impact on the kiwi's market valuation.
There won't be any high-tier macroeconomic data releases from the US in the remainder of the day and NZD/USD is unlikely to make a decisive move in either direction.
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.
