- The NZD / USD extended its rally at the beginning of the US session.
- The US dollar index appears to break the two-day winning streak.
- The risk-positive market environment weighs on the dollar as a safe haven on Tuesday.
The pair NZD / USD It broke above 0.7200 in early European morning and maintained its bullish momentum in the second half of the day. After touching its highest level in two weeks at 0.7248, the pair appears to have entered a consolidation phase and was last seen gaining 0.6% on the day at 0.7240.
Risk flows hurt DXY
Incessant selling pressure surrounding the USD fueled the daily rally in the NZD / USD on Tuesday. The US dollar index tumbled to a daily low of 90.11 after major US stock indexes opened in positive territory and made it difficult for the safe-haven dollar to find demand. At the moment, the DXY is down 0.25% at 90.17.
Data released by the Conference Board on Tuesday showed that consumer confidence in the United States improved modestly in January, but was largely ignored by market participants.
There will be no release of macroeconomic data from New Zealand on Wednesday and investors will shift their focus to the FOMC policy announcements.
The Fed is largely expected to keep its policy unchanged. However, market participants will be looking for new clues about possible changes in asset purchases, especially if the coronavirus relief bill is delayed.
Technical levels
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