NZD / USD rises to a new weekly high above 0.6950

• NZD / USD extended its daily rally early in the US session.
• The US Dollar Index remains in negative territory below 92.90.
• The market mood remains bullish following the mixed US data releases.

After posting strong daily gains on Monday, the NZD / USD retained its bullish momentum on Tuesday and hit a fresh weekly high of 0.6962 during US trading hours. At the time of writing, the pair was up 1% on the day at 0.6960.

Risk flows lift the NZD and the USD continues to weaken

Earlier in the day, upbeat data from New Zealand provided a boost to the kiwi. According to Statistics New Zealand, retail sales increased 3.3% on a quarterly basis, beating the market expectation of 2% by a wide margin.

Furthermore, the risk-positive market environment continues to help the NZD / USD rise in the second half of the day. Currently, the S&P 500 Index is trading at a new all-time high of 4,490, up 0.25% on the day.

On the other hand, the USD remains bearish as it struggles to find demand as a safe haven. Data from the United States revealed Tuesday that new home sales rose 1% in July, compared with analysts’ estimate of a 2.7% decline. On a negative note, the Richmond Fed manufacturing index fell to 9 in August from 27 in July.

However, these figures did not trigger a notable market reaction and the US Dollar Index was last seen losing 0.15% to 92.84.

On Wednesday, New Zealand’s trade balance data will be scrutinized for new momentum.

Technical levels to take into account