- The NZD / USD is falling for the second day in a row.
- The DXY US Dollar Index advances toward 91.00 on Wednesday.
- Investors await mid-level US data and FOMC minutes.
The USD renewed strength in the second half of the day weighed on the NZD / USD pair on Tuesday and forced it to close in negative territory. With the DXY US Dollar Index retaining its bullish momentum during today’s European session, NZD / USD remains under pressure below 0.7200 level.
The DXY index maintains a firm tone
Backed by a strong rebound observed in US Treasury yields., the DXY index posted modest daily gains on Tuesday and is currently at its highest level in eight days at 90.82, up 0.35% on the day. Although U.S. Treasury yields appear to be struggling to rise, Risk Averse Sentiment Helps Dollar Find Demand Wednesday.
Later in the day, data for retail sales, industrial production, and the IPPI producer price index stand out on the US economic calendar. More importantly, the FOMC will publish the minutes of its February meeting.
The FOMC monetary policy makers made it clear that the Fed will not even think about reducing asset purchases and will not overreact to short-term inflation spikes. Investors do not expect the statement to provide any new clues about the outlook for the policy.
Meanwhile, S&P 500 futures are down 0.1% on the day and a sell-off in US stocks is likely to allow the USD to continue to outperform its rivals during the American session.
No macroeconomic data will be released in New Zealand on Thursday.
NZD / USD technical levels
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