- NZD / USD is trading in a tight range above 0.7200 on Monday.
- The US Dollar Index consolidates last week’s losses below 90.50.
- US markets are closed due to the Presidents’ Day holiday.
The pair NZD / USD started the new week on a firm footing and rose to 0.7250 in the early trading hours of the European session. However, the pair struggled to preserve its bullish momentum and erased its daily gains. At time of writing, the pair was virtually unchanged on the day at 0.7224.
DXY lateralized in the range of 90.30-90.40
In the absence of significant fundamental drivers, the USD market valuation and the markets’ perception of risk continue to affect NZD / USD movements.
Strong gains seen in major European stock indices reflect a risky positive market environment, helping the kiwi to remain resilient against the dollar on Monday.
On the other hand, the US Dollar Index (DXY) is trading in a tight range below 90.50, allowing the NZD / USD to limit its losses. US markets will be closed due to the Presidents’ Day holiday and trading action is likely to remain subdued. On Tuesday, New Zealand visitor arrival data will be released, but it is not expected to receive a significant reaction from the market.
The next key macroeconomic data from the US will be Wednesday’s retail sales figures. In addition, the FOMC will release the February meeting minutes later that day.
Technical Levels
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