- 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
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.
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.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.