NZDUSD consolidates below 0.7000 on stronger USD
- NZD/USD remains depressed below 0.7000 on Tuesday
- US Dollar Index edges up on upbeat economic data and hawkish Fed officials.
- Risk-aversion weighs on the Kiwi as Delta variant spokes investors.
NZD/USD extends the previous session's downside momentum in the Asian session on Tuesday. The pair confides in a very narrow trading band with no meaningful traction.
At the time of writing, NZD/USD is trading at 0.6992, up 0.01% for the day.
The buying pressure in the US Dollar Index (DXY), which measures the greenback performance against its six major rivals, drags NZD/USD toward the lower levels. The DXY trades steady above 92.70 amid a rise in US Treasury yields.
The yield on the benchmark 10-year Treasury bonds scaled up to 1.32% on strong job opening data. Fed’s official’s hawkish view also aids in the strength of the greenback.
Atlanta Federal Reserve Bank President Raphael Bostic said that inflation is already at the level although labor market still had room for improvement to talk about taper soon.
The US job opening scaled up to a record high and hiring increased.
Meanwhile, US Senate moved gradually toward formalizing a $1 trillion bipartisan infrastructure bill on Tuesday. This also added to the optimism surrounding the greenback.
In addition to that, the increasing corona cases in the Asia-Pacific region underpins the demand of the US dollar on the back of its global safe-haven asset.
As for now, all eyes are on US Nonfarm Productivity data to gauge the market sentiment.
NZD/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
