- The NZD / USD registers modest gains during the European session.
- The US Dollar Index remains relatively quiet above 90.00 on Monday.
- Trading action is expected to remain subdued due to the US Memorial Day holiday.
The pair NZD / USD It lost nearly 50 pips on Friday, but managed to close the previous week in positive territory supported by the tough policy outlook from the Reserve Bank of New Zealand. At the start of the new week, the pair is rising modestly and was last seen gaining 0.2% at 0.7260.
DXY enters consolidation above 90.00
Earlier in the day, data from China showed that economic activity in the service sector expanded at a stronger-than-expected pace in May with the official non-manufacturing PMI improving to 55.2 from 54.9 in April. Additionally, NBS’s manufacturing PMI came in largely in line with analysts’ estimate at 51.
The US equity and bond markets will be closed due to the Memorial Day holiday on Monday and trading action is likely to remain subdued in the second half of the day. Meanwhile, the US Dollar Index (DXY) is fluctuating in a narrow range above 90.00, where it closed on Friday.
No high-level data from New Zealand will be released on Tuesday and investors will pay close attention to US ISM manufacturing PMI data.