- The NZD / USD struggles to make a decisive move in either direction.
- The US Dollar Index remains below 90.00 on Tuesday.
- The US ISM Manufacturing PMI is expected to remain unchanged at 60.7 in May.
The pair NZD / USD it closed flat on Monday and continues to trade in a relatively tight range on Tuesday. At time of writing, the pair, which touched a daily high of 0.7289, is shedding 0.1% on the day at 0.7260.
The only data from New Zealand on Tuesday showed that building permits rose 4.8% in April. Although this reading was much better than the March impression of -19.2%, it failed to trigger a notable market reaction.
DXY remains calm ahead of key US data
Meanwhile, the US dollar index remains relatively quiet after Monday’s modest decline and makes it difficult for NZD / USD to find direction. The DXY is currently unchanged on the day at 89.86. Meanwhile, S&P futures were up 0.55%, suggesting that the major Wall Street indices will start the week on a firm footing after the long weekend. Should risk flows begin to dominate financial markets in the second half of the day, the dollar could start to weaken against its rivals.
Later in the session, the US economic agenda will feature the final IHS Markit Manufacturing PMI for May and the ISM Manufacturing PMI. Investors will keep a close eye on the price paid index component of the ISM report. A stronger than expected reading could reignite inflation concerns and help the DXY gain traction.
Technical levels
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