- The NZD / USD struggles to preserve its bullish momentum on Tuesday.
- Risk-off sentiment keeps NZD gains limited.
- The US Dollar DXY Index remains deep in negative territory.
The pair NZD / USD gained over 40 pips on Monday and has managed to rise to its highest level in a month at 0.7254 on Tuesday. Nevertheless, The bad mood of the market has made it difficult for the higher perceived risk NZD to continue to push higher and has weighed on the pair. At the time of writing, the NZD / USD is rising modestly on the day around 0.7230.
USD selloff remains intact
Hours earlier, data released by the Reserve Bank of New Zealand (RBNZ) showed that Inflation expectations in the first quarter increased to 1.89% quarterly from 1.59% previously. This reading has helped the NZD gain traction as rising consumer prices are likely to force the RBNZ to refrain from taking a moderate step.
On the other hand, the observed drop of more than 2% in the yield of the US 10-year Treasury bonds now allows the US dollar to take advantage of safe-haven monetary flows. At the moment, the US Dollar DXY Index is down 0.38% on the day at 90.58, limiting the NZD / USD slide.
Data released by the NFIB foundation showed Tuesday that the US business optimism index dropped to 95 points in January from 95.9 in December. Later, JOLTS job vacancies data will be included in the US economic calendar No major macroeconomic data from New Zealand will be released on Wednesday.
NZD / USD technical levels
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