- The NZD / USD rose to its highest level since April 2018.
- The US Dollar DXY Index remains relatively quiet below 90.50.
- Mid-level data for the US and New Zealand will be released during today’s session.
The pair NZD / USD it gained nearly 100 pips last week and extended its move higher during the Asian session on Monday. After touching its highest level since April 2018 at 0.7338, the pair has lost traction and has retreated. At time of writing, the pair is holding slight daily gains above 0.7300.
Attention forum shifts to mid-level data posting
In the absence of significant fundamental drivers, Market risk sentiment at the beginning of the week has provided a boost to the NZD. However, the market mood seems to be turning cautious during the European session with the S&P 500 futures losing 0.7%. Additionally, the DAX 30 from Germany and the FTSE 100 from the UK are down more than 0.5% on the day.
If the major Wall Street indices start the day deep in negative territory, the NZD / USD could struggle to stay in positive territory with the US dollar regaining its strength.
Meanwhile, the DXY US Dollar Index is stable on the day around 90.30.
Later in the day, the Chicago Fed National Activity Index and the Dallas Fed Manufacturing Index will stand out on the US economic calendar. On Tuesday, the focus will be on New Zealand’s fourth quarter retail sales report for new catalysts.
NZD / USD technical levels
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