NZD / USD clings to modest daily gains above 0.6900, with its sights set on US stocks.

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  • The NZD / USD remains relatively quiet after closing lower on Tuesday.
  • The US Dollar Index remains above 93.00 on Wednesday.
  • The major Wall Street indices appear to open near Tuesday’s closing levels.

The pair NZD / USD it extended its slide on Tuesday and fell to the lowest level in 2021 at 0.6876. On Wednesday, the pair appears to have entered a consolidation phase and was last seen posting modest daily gains at 0.6925.

Risk flows help the NZD limit its losses

Hours earlier, data from New Zealand showed that spending on credit cards expanded 6.3% annually in June, compared with 27.2% in May. However, this reading failed to trigger a significant market reaction and the improved market mood helped the kiwi erase a small part of its losses.

On the other hand, the US Dollar Index continues to climb after extending its winning streak to four on Tuesday and making it difficult for the NZD / USD to achieve a stronger recovery.

There will be no high-level data releases on the US economic record and investors will remain focused on the perception of risk. Ahead of the opening bell, S&P futures are up 0.2% and Nasdaq futures are losing 0.15%, suggesting that the dollar is likely to retain its strength should US stocks fail to gain traction.

On Thursday, the US Department of Labor will release weekly data for initial jobless claims. Additionally, June existing US home sales data will be considered for further momentum.

Technical levels

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