NZD / USD struggles to break away from 2021 lows, trading near 0.6900

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  • The NZD / USD continues to suffer losses after Monday’s slide.
  • The US dollar index rises for the fourth consecutive trading day.
  • The major Wall Street indices appear to rebound on Tuesday.

The pair NZD / USD It lost more than 60 pips on Monday and extended its decline on Tuesday to hit its lowest level since November at 0.6888. At time of writing, the pair is trading near 0.6900, shedding 0.58% on the day.

DXY hovers near 93.00, with its sights set on Wall Street

The risk-off market environment at the beginning of the week provided a boost to the dollar as it weighed on the kiwi. Reflecting the strength of the US dollar, the US Dollar Index (DXY) reached its highest level at 93.03 before closing the day with modest gains at 92.82 on Monday. Currently, the DXY is up 0.16% to 92.97.

However, US stock index futures rose nearly 0.5% during the European session, suggesting that a rally in major Wall Street indices could help improve sentiment and keep USD gains limited in the second half. of the day.

On the other hand, the benchmark yield on 10-year US Treasuries, which lost more than 7% on Monday, is at its lowest level in more than five months at 1,167%, falling by 2 %. In the event that US Treasury yields fail to recover, US equities could struggle to gain traction.

Building permits and home construction data for June will appear on the US economic calendar on Tuesday. However, these figures are unlikely to provoke a significant market reaction.

Technical levels

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