- NZD / USD is recovering after last week’s drop.
- The market’s risk appetite appears to be helping the NZD find demand.
- Manufacturing PMI data will be included in the US economic agenda.
The pair NZD / USD It lost nearly 70 pips last week and was relatively quiet near 0.6600 during Asian trading hours on Monday. With market sentiment turning bullish ahead of the US session, the pair began to rise and was last seen trading at fresh daily highs near 0.6630, gaining 0.18% on the day.
Eyes on US Presidential Election, RBA Policy Announcements
Earlier in the day, the only New Zealand data revealed that building permits in September rose 3.6% after July’s 0.2% increase, but this was largely ignored by market participants.
Reflecting the market’s risk appetite, major European stock indices were up 1.2% to 1.9% on the day. Additionally, S&P 500 futures are rising 1.4%, suggesting that the major Wall Street indices are likely to open the day strongly higher.
Meanwhile, the US Dollar Index, which rose more than 1% last week, is consolidating its gains near 94.00, as investors appear to be stepping up and waiting before the US presidential election.
Later in the session, IHS Markit and ISM will release October manufacturing PMI data. During Asian business hours on Tuesday, the Reserve Bank of Australia (RBA) is expected to cut its policy rate and a strong reaction in the AUD / USD pair could affect positively correlated NZD / USD movements.
Credits: Forex Street
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