- The NZD / USD is moving within a tight range at the beginning of the week.
- The USD strengthens thanks to safe-haven monetary flows.
- The focus is on the new home sales data and the Chicago Fed National Activity Index for the US.
The pair NZD / USD it gained nearly 80 pips last week and appears to have entered a consolidation phase on Monday. At the time of writing, the pair remains practically unchanged on the day around the 0.6690 region.
Safe-haven flows support the USD
In the absence of major macroeconomic data releases at the start of the week, the perception of risk in the market appears to be driving the price action of currencies.
The feeling of risk aversion, amid the growing number of cases of coronavirus in Europe and lack of progress in US stimulus talks, is helping the USD find demand on Monday. At the moment, the DXY US Dollar Index is slightly above the 93.00 level, gaining 0.3% on the day.
In the second half of the day, the focus will be on new home sales data and data from the US Chicago Fed National Activity Index for fresh momentum. Meanwhile, S&P 500 futures are down 0.9%. A sharp drop in the major Wall Street indices could provide an additional boost to the USD during the American session.
On Tuesday, New Zealand’s trade balance data will be released.
NZD / USD technical levels
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Credits: Forex Street
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