- The NZD / USD lost its traction after making a modest rebound.
- The US dollar index is nearing multi-month highs.
- Private sector employment in the US increased more than expected in June.
After losing almost 100 pips in the first two days of the week, the pair NZD / USD it experienced a modest recovery on Wednesday but struggled to maintain its momentum. At time of writing, the pair was virtually unchanged on the day at 0.6988.
Earlier in the day, the kiwi found some demand despite mixed data from New Zealand. ANZ’s Activity Outlook Index improved to 31.6% in June from 29.1% and beat the market expectation of 29.1%. On a negative note, the ANZ business confidence index fell slightly to -0.6 from -0.4 in June.
DXY turns north after ADP data
On the other hand, the Automatic Data Processing Research Institute (ADP) reported that private sector employment in the US increased by 692,000 in June. This figure beat the market expectation of 600,000 and helped the US dollar index (DXY) rise.
Currently, the DXY is up 0.22% on the day to 92.27 and remains close to the multi-month high it set at 92.40 on June 18.
There will be no further US data releases for the remainder of the day and the USD market valuation is likely to continue to drive the NZD / USD movements. On Thursday, New Zealand’s May building permit data will be analyzed for fresh momentum.
Technical levels
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