- NZD/USD remains within known levels, although up 0.12%.
- New Zealand consumer sentiment, worse than expected, capped NZD/USD.
- The market mood kept the dollar on the defensive.
The NZD gains some ground against the USD on Tuesday as the American session wraps up. The NZD/USD it is up 0.12% after hitting a daily high around 0.6363, but failed to break resistance near 0.6370, opening the door for a pullback. At the time of writing, the NZD/USD is trading at 0.6336.
New Zealand consumer sentiment plummets, though NZD/USD remains afloat
The mood of risk maintains the weight of the greenback. US equities will end the day higher, between 2.41% and 2.93%. Meanwhile, NZD/USD struggled to rise courtesy of June’s dismal NZ Consumer Confidence, which tumbled to the lowest level on record, falling from 92.1 to 78.7.
“The combination of rising mortgage interest rates and rising costs of living has already dealt a severe blow to disposable income. And with interest rates poised to rise even higher, many households are will find the pressure on their finances more intense in the coming months,” Westpac analysts wrote.
Meanwhile, the US economic docket saw some Fed officials cross the wires. Richmond Fed President Thomas Barkin said he had decided on 75 basis points in June based on reports on consumer sentiment and inflation expectations from the University of Michigan (UoM). Furthermore, he added that 50-75 bps in July is reasonable and commented that inflation would come down once supply chain issues are resolved.
Earlier, the Chicago Fed National Activity Index for May was 0.01, the lowest in eight months, down from 0.40 in April. As of late, US existing home sales fell 3.4% to 5.41 million in May 2022, the lowest level since June 2020.
In the coming week, traders should prepare for Fed Chairman Jerome Powell’s appearance at the US Senate Banking Committee, where he will be grilled by senators on the state of the US economy.
Technical levels
Source: Fx Street
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