- The NZD / USD is posting small daily gains around 0.7000.
- The US Dollar DXY Index continues to move sideways below 93.00.
- The major Wall Street indices appear to be opening in negative territory.
After closing the previous week deep into negative territory, The NZD / USD pair has faced modest downward pressure during the Asian session on Monday and has fallen to a daily low of 0.6972. However, with market sentiment improving during the European session, the pair has recovered its initial losses and is trading, at the time of writing, near the 0.700 region with small intraday gains.
The focus is on Wall Street
At the start of the new week, the DXY US Dollar Index continues to fluctuate within a narrow range below the 93.00 level as investors await the next significant catalyst. Although major European stock indices post modest losses on Monday, US stock index futures have fallen and financial sector stocks are suffering heavy losses following the liquidation of a large hedge fund, Archegos Capital.
Currently, Dow Jones and S&P 500 futures are down about 0.5%, suggesting that risk-off money flows could start to dominate financial markets in the second half of the day and help the USD find demand.
On the other hand, the 10-year US Treasury yield is down more than 1% on the day, limiting the USD’s upward movement for the time being.
The Federal Reserve Bank of Dallas’ manufacturing companies index will be the only data presented on the US economic calendar on Monday. New Zealand building permit data for February will be released on Tuesday. However, the market reaction to this data is likely to be small.
NZD / USD technical levels
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