- The NZD / USD is falling sharply after closing in positive territory on Monday.
- The US dollar DXY index posted a modest rally on Tuesday.
- S&P 500 futures are moving lower after hitting all-time highs.
The pair NZD / USD It started the new week on a firm note and posted its highest daily close in nearly two weeks above 0.7050 on Monday. However, the pair has lost traction on Tuesday and retreats near the 0.7000 level.
DXY Index Recovers as Market Sentiment Turns Sour
On Monday, risk appetite sentiment in the market made it difficult for the US dollar to find demand and provided a boost to the NZD / USD. The US Dollar DXY Index lost 0.5% to close at 92.57 when the Dow Jones Industrial Average and S&P 500 Index hit new all-time highs.
Data from the US showed that the ISM services PMI rose to 63.7 points in March, compared to analysts’ estimate of 58.5, and allowed risky money flows to remain under the control of financial markets in the second half of the day.
On Tuesday, investors seem to have adopted a cautious tone with S&P 500 futures losing 0.25% on the day. Consequently, the DXY index is rising 0.2% to 92.75 and weighs on the NZD / USD pair.
During the American session, the IBD / TIPP Economic Optimism Index and JOLTS job vacancies will be published on the US economic calendar.However, investors are likely to ignore this data and remain focused on risk perception. .
NZD / USD technical levels
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