NZD / USD cuts initial losses, remains below 0.7000

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  • The NZD / USD starts to improve during the European session.
  • The US Dollar Index remains in negative territory below 92.80.
  • New Zealand posted a trade surplus in June.

The pair NZD / USD it closed modestly lower the previous week and declined during Asian business hours on Monday. However, with the dollar struggling to find demand in the European session, the pair managed to rebound and was last seen posting small daily gains at 0.6980.

Hours earlier, New Zealand data showed that the trade surplus narrowed to NZD261 million in June from NZD489 million in July. Consequently, the annual trade deficit widened to -NZD0.252 billion from -NZD0.041 billion, making it difficult for the NZD to strengthen against its rivals.

DXY is moving sideways below 93.00

On the other hand, the US Dollar Index (DXY) remains in a consolidation phase below 93.00 at the start of the week as investors appear to choose to stay on the sidelines as they await this week’s key event and the release. of data. Currently, the DXY is down 0.15% to 92.75.

Meanwhile, US equity futures are modestly lower on Monday, suggesting that risk perception will not be able to provide a directional clue for the pair in the second half of the day.

On Wednesday, the US Federal Reserve will announce its interest rate decision and publish the monetary policy statement. On Thursday, the US Bureau of Economic Analysis will release its first estimate of second-quarter GDP growth before releasing data from the Personal Consumption Expenditure (PCE) price index on Friday.

Technical levels

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