- The NZD / USD is moving within a relatively tight range on Tuesday.
- The DXY US Dollar Index posts modest daily gains above 90.00.
- Investors await testimony from FOMC Chairman Jerome Powell at 15:00 GMT.
The pair NZD / USD It closed positive for the third day in a row and touched its highest level since April 2018 at 0.7345 on Monday. With price action turning moderate on Tuesday, the pair appears to have entered a consolidation phase. At time of writing, the pair is down 0.08% on the day at 0.7325.
USD Selling Takes a Break Before Powell Testimony
Widespread selling pressure around the US dollar has given NZD / USD a boost at the start of the week. The DXY US Dollar Index has fallen below the 90.00 level for the first time in more than a month during the Asian session on Tuesday, but has registered a modest rebound. At the moment, the DXY index is up 0.13% at 90.13.
Later in the day, the release of the Conference Board consumer confidence and the Federal Reserve Bank of Richmond’s manufacturing index will draw investors’ attention for new momentum.
More importantly, market participants will closely follow the Semiannual Testimony from FOMC President Jerome Powell, before the Senate Banking Committee.
Powell’s comments on the latest rally seen in US Treasury yields and concerns about a runaway rise in inflation could add to volatility in the second half of the day. If Powell plays down inflation concerns and reaffirms the Fed’s dovish stance, the dollar could struggle to find demand and allow the NZD / USD to regain its traction.
NZD / USD technical levels
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