- The NZD / USD is trading with modest gains early in the US session.
- Rising US Treasury yields help keep the dollar strong.
- The focus shifts to the New Zealand labor market report.
The pair NZD / USD It rose to a daily high of 0.7193 early in the European session, but struggled to maintain its bullish momentum. At time of writing, the pair posted small daily gains at 0.7162.
The constant strength of the USD limits the rise of the NZD / USD
The risk-positive market environment, as reflected by the strong gains seen in major European stock indices and US equity futures, is helping the kiwi to remain resilient against its peers on Tuesday. However, the strength of the broad-based USD does not allow the NZD / USD to rise further.
In the absence of significant fundamental drivers, the observed increase of more than 1% in US Treasury yields is providing a boost to the USD. The US Dollar Index, which gained 0.45% on Monday, is currently at its highest level in nearly two months at 91.15, up 0.2% on the day.
Statistics New Zealand will release its labor market report at the start of the Asian session on Wednesday. Investors expect the Unemployment Rate in the fourth quarter to rise to 5.6% from 5.3% and a better than expected reading could help the NZD begin to outperform its rivals.
Technical levels
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