- The NZD / USD touched its highest level since the beginning of March at 0.7301 on Friday.
- The US dollar index struggles to erase last week’s losses.
- Market action is likely to remain subdued for the remainder of the day.
The pair NZD / USD it rose sharply on Friday and gained over 100 pips the week before. In the absence of significant fundamental drivers, the pair started the new week in a relatively calm fashion and appears to have entered a consolidation phase around 0.7300, where it was up 0.3% on the day.
The USD remains on the defensive Monday
Data released by the U.S. Bureau of Labor Statistics on Friday showed that non-farm payrolls (NFPs) in April increased by just 266,000. This reading disappointed the market expectation of 978,000 by a large margin and triggered a sell off of USD before the weekend. The US Dollar Index is still struggling to find demand on Monday and was last seen shedding 0.1% to 90.12, allowing the NZD / USD to remain in positive territory.
No US macro data will be released and the USD market valuation is likely to affect NZD / USD movements.
Meanwhile, S&P 500 futures are flat on the day, suggesting that the major Wall Street indices will open near last week’s closing levels.
On Tuesday, New Zealand e-card retail sales data will be examined for fresh momentum.
Technical levels
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