NZD / USD consolidates daily gains near 0.7250 ahead of mid-level data

• NZD / USD is trading in positive territory on Tuesday.
• The US Dollar Index continues to push lower towards 90.00.
• The New York Empire State Manufacturing Index and New Zealand GDT Price Index will be as follows.

The pair NZD / USD it posted small gains on Monday and maintained its bullish momentum during Asian trading hours on Tuesday. After advancing to its best level in over a month at 0.7269, the pair began to consolidate its gains and was last seen rising 0.36% on the day at 0.7252.

Earlier in the day, the positive risk market environment, as reflected by the strong gains seen in major Asian stock indices, provided a boost to the NZD. Furthermore, the widespread selling pressure surrounding the dollar remained intact during the first half of the day and helped the NZD / USD to rise.

The US Dollar Index, which tracks the performance of the USD against a basket of six major currencies, is currently down 0.33% at 90.18.

Later in the session, the Federal Reserve Bank of New York’s Empire State Manufacturing Index will be examined for further momentum. Additionally, market participants will closely follow New Zealand’s biweekly GDT price index data.

NZD / USD technical outlook

Analysts at Credit Suisse think the next resistance zone for the NZD / USD is lined up at 0.7281 / 86 before 0.7300.

“Beyond here we can see a retest of the current year high at 0.7306 / 15, where we would expect to see a first attempt at a top, but with an eventual breakout finally reaffirming the broader uptrend,” the analysts added. “Support is initially seen at 0.7225, then 0.7215 / 00, below which would ease the immediate bullish bias and see a move back to 0.7176 / 72. Removal from here would expose support at 0.7159.”

Technical Levels