- NZD / USD is clinging to impressive daily gains on Tuesday.
- Upbeat New Zealand data provided a boost to NZD.
- The US Dollar Index remains green above 92.30 ahead of the PMI data.
The pair NZD / USD It gained traction during Asian business hours on Tuesday and reached its highest level since mid-June at 0.7106. With market action turning subdued ahead of key US data release, the pair is consolidating its gains and was last seen trading at 0.7087, up nearly 0.9% on the day.
NZD capitalizes on solid data, AUD rally
Hours earlier, New Zealand data showed that the NZIER business confidence index improved sharply to 7% in the second quarter from -13% in the first quarter and this upbeat reading provided a boost to the NZD.
Furthermore, the strong rally seen in the positively correlated AUD / USD following the aggressive policy change by the Reserve Bank of Australia (RBA) supported the rally in the NZD / USD. The RBA announced on Tuesday that it reduced weekly asset purchases to A $ 4 billion from A $ 5 billion.
Later in the session, services PMI data from IHS Markit and US ISM will be analyzed for fresh momentum. Market participants will pay close attention to the Prices Paid component of the ISM PMI report. When the same component of the ISM manufacturing PMI released a high figure in June, the USD outperformed its rivals and a similar reaction could be expected. Before this data, the US Dollar Index posted small daily gains at 92.33.
Additionally, the New Zealand GDT price index will be released during the American session.
Technical levels
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