NZD / USD extends its sideways move above 0.7000

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  • The NZD / USD struggles to find direction at the beginning of the week.
  • The US Dollar Index remains flat above 92.00 on a quiet day.
  • Financial markets in the US will be closed due to the Independence Day holiday.

Despite a decisive rally on Friday, the pair NZD / USD it closed the previous week in negative territory and appears to be having a difficult time extending its recovery on Monday. At time of writing, the pair was down 0.1% on the day at 0.7020.

DXY comfortably holds above 92.00

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In the absence of high-level data releases and fundamentals, the USD valuation continues to affect NZD / USD movements. The June mixed jobs report from the US on Friday triggered a selloff of the dollar and the US dollar index (DXY) lost 0.3%. On Monday, the DXY is moving sideways above 92.20, which does not allow the NZD / USD to turn north.

Financial markets in the US will be closed due to the Independence Day holiday and market action is likely to remain subdued.

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On the other hand, NZIER business confidence index data for the second quarter will be released from New Zealand on Tuesday. Hours earlier, the ANZ Commodity Price Index hit 0.8% in June, compared with analysts’ estimate of 1.2%, but this reading was largely ignored by market participants.

Meanwhile, the Reserve Bank of Australia (RBA) will announce its policy decisions and a significant reaction in the positively correlated AUD / USD pair could affect the action of the NZD / USD.

Technical levels


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