- The NZD / USD continues to struggle to find direction.
- The DXY US Dollar Index posts modest daily gains above the 92.00 level.
- Investors await data from the US CPI consumer price index.
The pair NZD / USD it closed the first day of the week practically unchanged and has moved lower during the Asian session on Tuesday. However, after falling towards 0.7600, the pair has managed to recover its initial losses, recording small daily losses around 0.7025 level at the time of writing.
The focus is on US inflation data.
Data from New Zealand showed Tuesday that Retail credit card sales in March increased 0.9% after the 2.5% drop in February, but this reading did not help the NZ gain traction against its rivals.
On the other hand, the US NFIB Business Optimism Index improved to 98.2 points in March from 95.8 in February, but was largely ignored by market participants.
At the time of writing, the US dollar DXY index rises 0.12% on the day at 92.20 supported by a 1% rise in the yield on US 10-year Treasuries. Later in the session, the US Bureau of Labor Statistics will release the CPI consumer price index figures. Investors expect the underlying CPI to rise to 1.5% per annum. A stronger than expected figure could help the dollar continue to outperform its rivals and weigh on the NZD / USD pair.
On Wednesday, the Reserve Bank of New Zealand (RBNZ) will announce its interest rate decision and publish the rate statement. The RBNZ is largely expected to keep its policy rate unchanged at 0.25%.
NZD / USD technical levels
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