NZD/USD struggles to gather momentum, clings to modest gains above 0.7200
- NZD/USD is edging higher after closing in green on Monday.
- USD struggles to find demand as risk flows continue to dominate the markets.
- Investors await Consumer Confidence and New Home Sales data from US.
The NZD/USD pair managed to close the first day of the week in the positive territory and continued to push higher during the first half of the day on Tuesday. After touching a fresh daily high of 0.7241, however, the pair seems to have gone into a consolidation phase and was last seen gaining 0.23% on the day at 0.7230.
USD selloff continues on Tuesday
The broad-based selling pressure surrounding the greenback allowed NZD/USD to gain traction at the start of the week. In the absence of significant fundamental drivers, the risk-positive market environment made it hard for the USD to attract investors. The US Dollar Index lost (DXY) 0.21% on Monday and extended its slide to a fresh multi-month low of 89.53 on Tuesday. At the moment, the DXY is down 0.2% at 89.66.
In the meantime, the S&P Futures are up 0.3% on the day and the Nasdaq Futures are rising 0.45, suggesting risk flows are likely to force the USD to stay on the back foot in the second half of the day.
Later in the session, the Conference Board's Consumer Confidence report and New Home Sales data will be featured in the US economic docket.
On Wednesday, the Reserve Bank of New Zealand will announce its Interest Rate Decision and release the Monetary Policy Statement during the Asian session.
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.
