- The NZD / USD struggles to stay above 0.7000 on Tuesday.
- The US dollar index continues to rise during the European session.
- Focus shifts to June US CPI data.
After closing the first trading day of the week in negative territory, the pair NZD / USD it rose during the Asian session and hit a daily high of 0.7010 before losing its traction. At time of writing, the pair was virtually unchanged on a daily basis at 0.6970.
Hours earlier, data from New Zealand showed that the food price index rose 1.4% monthly in June. More importantly, China posted a trade surplus of $ 51.5 billion, compared to analysts’ estimate of $ 44.2 billion, and exports were up 32.2% (in USD terms) on an annual basis in June. . Although these figures helped the kiwi find demand, the renewed strength of the USD in the European session forced the NZD / USD to turn south.
With an eye on the US inflation report.
The US Dollar Index, which tracks the USD’s performance against a basket of six major currencies, is up 0.15% on the day to 92.36.
Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for June. Investors expect the CPI to decline to 4.9% annually from 5% in May.
When previewing this data, “the important and unanswered question is how much inflation has been created by the economic dislocation from lockdowns,” noted FXStreet senior analyst Joseph Trevisani. “Market response to CPI figures for June and beyond will be limited until we begin to get an answer to that important question.”
Technical levels
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