- NZD / USD is falling for the second day in a row.
- The US Dollar Index recovered above 91.00 on Monday.
- The major Wall Street indices appear to be opening in negative territory.
After rising to its highest level since April 2018 at 0.7106, the pair NZD / USD made a technical correction and posted modest losses on Friday. With investors becoming cautious early in the week, the pair continued to decline and was last seen losing 0.35% on the day at 0.7020.
DXY recovers thanks to flows of risk aversion
Last week, the US dollar index (DXY) lost more than 1% as the dollar struggled to find demand amid flows of risk aversion. However, renewed concerns about the failure of the EU and the UK to reach a trade deal caused major European currencies to lose steam and helped the dollar begin to erase its losses. At the moment, the DXY is up 0.37% on the day at 91.04.
Confirming the market’s bad mood, S&P 500 futures were down 0.45% on the day to 3,681, suggesting that the major Wall Street indices could open into negative territory on Monday and allow the DXY to maintain its bullish momentum.
Meanwhile, data from China showed on Monday that the November trade surplus expanded at a stronger pace than expected, but was largely ignored by market participants.
No major US macro data will be released for the remainder of the day and risk sentiment could continue to affect NZD / USD movements.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
