- NZD / USD is trading lower at the beginning of the week.
- The US dollar index registered a modest rebound on Monday.
- The major Wall Street indices appear to be opening lower.
The pair NZD / USD it was down early in the Asian session on Monday and appears to be having a hard time erasing its losses. It then bounced and is now trading modestly lower around 0.7035.
USD capitalizes on bitter market mood
At the beginning of the week, data from China showed industrial production rose 6.4% annually in July and fell short of market consensus for a 7.8% increase. Additionally, retail sales in China expanded 8.5% in the same period, below analysts’ estimate of 11.5%. This disappointing data weighed on the kiwi and caused the NZD / USD to turn south.
On the other hand, the cautious mood of the market on Monday is helping the dollar gain traction against its rivals. At the moment, the US Dollar Index is up 0.15% on the day at 92.65.
Meanwhile, the S&P Futures and Dow Futures were down 0.4%, suggesting that the major Wall Street indices will open on the back foot. Should risk aversion risk flows continue to dominate markets in the second half of the day, the USD could continue to outperform its rivals.
There will be no high-level data releases from New Zealand on Tuesday. On Wednesday, the Reserve Bank of New Zealand will announce its monetary policy decisions.
On the other hand, from the US they published the New York Fed’s Empire manufacturing index, which has suffered a great setback in August, falling to 18.3 points from July 43, well below the 29 expected.
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
